Thailand is stepping up its game with cryptocurrency ETFs. The nation aims to be more than just a place for retail trading. It seeks to become a regional centre for institutions. The crypto ETF is the main product in this initiative, which has the support of the regulators who see it as a tool that can bring more trust and access to the market.

The Thai SEC is working on new regulations that will pave the way for crypto ETFs, futures trading, and other tokenized investment products. As per SEC’s deputy secretary-general, Jomkwan Kongsakul, the formal guidelines for crypto ETFs could come by early 2023. The objective is straightforward, to make crypto easy, safe, and familiar for traditional investors.

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Cryptocurrency ETF as Thailand’s Institutional Gateway

A cryptocurrency ETF gets rid of the biggest concern investors had. There would be no private key management or worries about wallet hacking. Investors will get exposure through regulated market instruments. The Thai regulators regard this as a significant benefit.

The SEC has already granted principle approval to cryptocurrency ETF proposals and is now working on investment and operational rules. Digital assets are going to be considered another asset class, which means that investors can put 5% of a diversified portfolio into crypto.

This step indicates a bold change. Crypto is no longer considered an asset of the fringes. Rather, it is being incorporated into mainstream finance.

Cryptocurrency ETF, Futures, and Tighter Oversight

Thailand is turning a new leaf in its cryptocurrency regulation by planning to conduct future trading on the Thailand Futures Exchange besides the cryptocurrency ETF.

The introduction of market makers will ensure liquidity, and digital assets will be accepted under the Derivatives Act. All these alterations serve to offer institutions the required depth and structure.

In the meantime, the SEC is making a move to control the financial influencers even more tightly. It has been decided that any endorsement linked to investment profits will necessitate corresponding approval. This is tantamount to a warning directed against the use of unregulated promotion and hype-driven trading.

Moreover, Thailand has plans for central bank cooperation through a tokenization sandbox. Regulatory supervision will be provided for testing the products of bond token issuers.

Strong trading activities are there even though crypto payments are still prohibited. Daily volumes of about $60 million are close to what Bitkub sees by itself.

The regulator’s seriousness is indicated by recent actions such as the temporary suspension of KuCoin Thailand. Thailand is open to growth but only on its own terms.

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