Thailand’s Securities and Exchange Commission has issued 11 regulatory measures for crypto exchange-traded funds, with the framework set to take effect on Oct. 16. In the first phase, ETFs will be allowed to invest only in Bitcoin and Ether, and they must follow a passive investment strategy. The rules also set an exposure requirement: the annual average net exposure to a single crypto asset must be no less than 80% of the fund’s net asset value. Custody must be handled by regulated digital asset custodians. The new framework also permits mutual funds and private funds to invest in locally listed Thai crypto ETFs, while barring securities firms from offering margin financing for such purchases. At the same time, brokers will not be allowed in the initial phase to provide access to overseas crypto ETFs for clients other than institutional investors and ultra-high-net-worth investors.
Thailand’s Securities and Exchange Commission issued 11 regulatory rules for crypto exchange-traded funds on Oct. 9, according to BlockBeats. The measures will take effect on Oct. 16.
Under the new framework, ETFs in the first phase may invest only in Bitcoin and Ether and must use a passive investment strategy. The annual average net exposure to any single crypto asset must be at least 80% of the fund’s net asset value. The assets must also be held by regulated digital asset custodians.
The rules also allow mutual funds and private funds to invest in locally listed Thai crypto ETFs. Securities firms, however, are barred from offering financing services for purchases. In addition, during the initial phase, brokers may not provide access to overseas crypto ETF investments for clients other than institutional investors and ultra-high-net-worth investors.
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