Thailand SEC publishes Bitcoin and Ethereum ETF rules, effective October 16

On October 9, according to The Block, the Thailand Securities and Exchange Commission (SEC) issued regulatory framework rules for cryptocurrency exchange-traded funds (ETFs), scheduled to take effect officially on October 16. In the initial phase, eligible fund underlying assets will be limited to Bitcoin (BTC) and Ethereum (ETH).

The new regulations require that the funds must track crypto asset prices, and during each accounting period, the average net risk exposure to a single crypto asset must be maintained at no less than 80% of the fund’s net asset value (NAV). Funds must utilize licensed custodians regulated by the Thailand SEC and are restricted to trading exclusively on the Stock Exchange of Thailand.

Additionally, investors are required to sign a risk acknowledgment form prior to trading, and securities firms are prohibited from providing margin loans to purchasers of such ETFs. Regarding institutional participation, domestic mutual funds and private funds in Thailand will be permitted to invest in locally listed crypto ETFs; however, regulators currently prohibit the issuance or offering of depositary receipts (DR) linked to overseas crypto ETFs, and brokerages are not allowed to arrange overseas crypto ETF investment services for non-institutional and non-ultra-high-net-worth clients.