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- Thailand SEC introduces crypto ETF regulations for institutional investors.
- Crypto futures trading and tokenized assets gain support in Thailand.
- SEC tightens financial influencer rules and boosts crypto market security.
Thailand’s Securities and Exchange Commission (SEC) is set to introduce new regulations to support the establishment of crypto exchange-traded funds (ETFs), crypto futures trading, and tokenized investment products. The SEC Deputy Secretary-General Jomkwan Kongsakul said that formal crypto ETF guidelines will be introduced at the beginning of the year.
Boosting Institutional Crypto Investment with ETFs and Futures
Crypto ETFs are seen as a way to enhance access to digital assets, and Kongsakul states they will address major security concerns, such as hacking threats and wallet management issues. The action should help open the market to additional institutional investors by eliminating the complexity and risk of owning crypto assets directly.
Also Read: Iran’s Central Bank Acquires $507 Million in USDT to Bypass Sanctions.
Besides crypto ETFs, the SEC will increase regulation and encourage crypto futures trading at the Thailand Futures Exchange (TFEX). This is part of an overall plan to increase liquidity in the crypto market, which will also include developing market makers. The other significant trend is the establishment of digital assets as a recognized asset category under the Derivatives Act, which can more severely enter Thailand’s financial system.
Tighter Oversight and the Rise of Tokenized Assets
The Thai government’s crypto regulatory agenda aims to make the nation a regional center for institutional crypto investment. Although it is illegal to make crypto payments, retail trading is on the rise, and the biggest exchange in Thailand, Bitkub, is recording daily trading volumes of around $60 million.
Also, the SEC is increasing supervision of financial influencers, and Kongsakul indicates that any person giving investment advice involving securities or returns must be registered as an investment advisor or an introducing broker. This move aims to reduce the risk of unqualified or misleading advice in the market.
In addition, the SEC is working together with the Bank of Thailand to develop a tokenization sandbox. This program stimulates the issuance of bond tokens and provides a controlled setting for investigating the field of tokenized securities. This is one of the SEC’s hopes, which further increases the applicability of digital assets to the country’s ecosystem of
challenges and Optimism for Thailand’s Crypto Future.
Although KuCoin Thailand was suspended due to capital concerns, the future of the Thai crypto market is auspicious. The SEC is contributing to the creation of a safe and expanding crypto investment industry in the country with its active regulatory strategy.
Also Read: Coinbase CEO Focuses on U.S. Crypto Market Bill During Davos Talks
