Thailand Mulls Local Bitcoin ETFs While Regional Neighbors Stick to Ban

Key Takeaways

• Thailand SEC could approve local Bitcoin ETFs.
• Local Bitcoin ETFs could give Thailand a competitive advantage over its regional peers.
• Asia is rapidly emerging as a crypto hub, with a few notable exceptions.

The Thailand Securities and Exchange Commission (SEC) is considering approving Bitcoin exchange-traded funds (ETFs) issued by local financial institutions, potentially giving the country a competitive edge in the region.

As Asia becomes a growing hub for crypto activity, Thailand’s decision could set it apart from neighboring nations that have either banned or yet to approve local crypto investment products.

Thailand SEC May Approve Bitcoin ETF Soon

In a recent interview , Thailand SEC Secretary-General Pornanong Budsaratragoon confirmed that the agency is reviewing Bitcoin ETFs.

“Like it or not, we have to move along with more adoption of cryptocurrencies worldwide. We have to adapt and ensure that our investors have more options in crypto assets with proper protection,” Budsaratragoon said.

In 2024, the Thai SEC allowed institutional investors to gain exposure to U.S.-based Bitcoin ETFs via a local fund.

Following this, One Asset Management, a major Thai financial firm, launched a fund offering exposure to U.S. ETFs.

Racing to Become Asia’s Crypto Hub

Asia has emerged as a key battleground for crypto regulation and investment opportunities.

While China has maintained a strict ban on crypto activities since 2021, Taiwan, Hong Kong , and Singapore have adopted more favorable policies toward crypto.

Taiwan has allowed institutional investors to gain exposure to foreign crypto ETFs, while Hong Kong has rolled out its own crypto ETF products.

Japan and South Korea, however, have lagged behind.

Japan, once a leader in crypto adoption, has kept its stance restrictive by banning investment in crypto ETFs .

South Korea has similarly withheld approval for crypto ETFs despite having early regulatory frameworks for crypto markets.

As a result, Singapore and Thailand stand out as progressive players in the region, and Thailand may soon pull ahead by approving local Bitcoin ETFs.

Thailand Seeks to Capitalize on Crypto Recovery

Thailand’s crypto market activity has surged alongside the broader global market rebound, though it remains well below pre-pandemic levels, which were affected by high-profile crypto bankruptcies in 2022.

Nevertheless, the government’s growing openness to crypto investment products signals its intent to leverage crypto’s global popularity and boost local market offerings.

By enabling local Bitcoin ETFs, Thailand would likely attract more investment opportunities and continue to position itself as a leading destination for crypto activity in Asia.