Thailand Issues New Regulations for Crypto ETFs, Initially Allowing Only Bitcoin and Ethereum Investments

October 9 - The Securities and Exchange Commission of Thailand has issued 11 regulatory provisions related to cryptocurrency ETFs, which will take effect on October 16. In the initial phase, ETFs are only allowed to invest in Bitcoin and Ethereum and adopt passive investment strategies. The annual average net exposure to a single crypto asset must not be less than 80% of the fund's net asset value, and the assets must be custodied by a regulated digital asset custodian.

In addition, the new rules allow mutual funds and private funds to invest in local Thai crypto ETFs, but prohibit brokers from providing margin purchase services. In the initial phase, brokers are not allowed to provide offshore crypto ETF investment services to clients other than institutional investors and ultra-high-net-worth investors.