Thailand’s SEC Updates Investment Criteria for Digital Tokens
The Securities and Exchange Commission (SEC) of Thailand has revised its criteria for investing in digital tokens, making it easier for investors. The SEC Committee approved the principles for improving investment criteria and related criteria for digital asset business operations to protect investors while considering the risks associated with digital assets. After receiving positive feedback from commentators, the SEC opened the floor for public comments before finalizing the rules. As a result, the commission has lifted investment restrictions on retail investors for real estate-backed ICOs and infra-backed ICOs. Previously, retail investors were limited to investing a maximum of 300,000 baht per offering.
Thailand’s SEC Allows Custodial Wallet Providers
The SEC also reviewed the criteria for custodial wallet provider businesses, allowing them to offer services to digital asset business operators. However, these businesses must have major shareholders who possess expertise and experience in safeguarding clients’ securities or other financial assets. Compliance with SEC-specified independence criteria is also required. Additionally, digital asset business operators seeking to engage in additional activities must obtain permission from the SEC, and they are prohibited from working with illegal digital asset operators. The updated rules have been published in the Royal Gazette and will be effective from January 16, 2024.
Thai’s SEC Denies Spot Bitcoin ETFs
The Thai SEC has made it clear that it will not permit spot Bitcoin exchange-traded funds (ETFs) in the country. The regulator believes that foreign-approved Bitcoin ETFs are still in their early stages and may not align with the local market’s needs. While securities brokerages in Thailand are encouraging investors to consider US-based Bitcoin ETFs, the Thai SEC warns that investment advice must be appropriate and in line with available products in Thailand. Bitcoin ETFs provide a convenient pathway for investors to gain exposure to Bitcoin without the need for crypto wallets and exchanges. The approval of Bitcoin ETFs in the US marks a significant shift in attitude.
Hot Take: Thailand Eases Digital Asset Investment Restrictions
Thailand’s SEC has taken steps to ease investment restrictions in select digital assets, benefiting retail investors. By lifting previous limitations and allowing custodial wallet providers, the SEC aims to promote investor protection while facilitating the growth of the digital asset industry. However, the regulator remains cautious about spot Bitcoin ETFs, citing the need for further evaluation of their suitability for the local market. This move aligns with global trends as countries like Canada, Australia, and Switzerland have already embraced Bitcoin ETFs. As digital assets continue to gain mainstream acceptance, regulators worldwide are navigating the evolving landscape to strike a balance between innovation and investor protection.
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