Thailand’s Securities and Exchange Commission has issued 11 related announcements to establish a regulatory framework for crypto exchange-traded funds, with the rules set to take effect on Oct. 16. Under the framework, crypto ETFs must be passive funds that track the price of a single digital asset, and their average net exposure to that asset in each accounting year must not fall below 80% of net asset value. At the initial stage, eligible underlying assets are limited to Bitcoin and Ether. These ETFs will be listed and traded exclusively on the Stock Exchange of Thailand, while custody must be handled by digital asset custodians regulated by the SEC. Brokers are barred from providing margin financing for the products. The regulator also opened the door for mutual funds and private funds to invest in locally listed crypto ETFs, but said that, for now, depository receipts and other substitute products linked to overseas crypto ETFs will not be allowed.
Thailand’s Securities and Exchange Commission has released 11 related announcements that establish a framework for the creation and supervision of crypto exchange-traded funds. The rules will take effect on Oct. 16.
Under the framework, crypto ETFs must be passive funds tracking the price of a single crypto asset. In each accounting year, their average net exposure to that asset must be no less than 80% of net asset value. At the initial stage, only Bitcoin and Ether are allowed as eligible underlying assets.
These ETFs will be listed and traded exclusively on the Stock Exchange of Thailand. Their assets must be held by digital asset custodians regulated by the SEC, and brokers will not be allowed to offer margin financing for the products.
The SEC also allowed mutual funds and private funds to invest in local crypto ETFs. At the same time, it said that depository receipts and other substitute products tied to overseas crypto ETFs will not be permitted at the initial stage.
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