Thailand is taking a new step towards a compliance-encrypted investment product. The local CVM has initiated a public consultation process on the draft code on encryption of ETFs, which covers the framework for the establishment of Bitcoin and ETFs, as well as the adjustment of access standards for digital asset custodians abroad.
Both rules synchronized.
The draft covers two main directions. One is the establishment of a regulatory framework for the encryption ETF for the Thai market, which means that local regulators are beginning to formally discuss how regulated bitcoin, ETF products land.
The second is to amend the eligibility criteria for offshore trusts to apply to those overseas institutions that hold digital assets, including mutual funds and private funds. This is intended to provide more uniform requirements for the relevant products in the hosting chain.
The goal is to expand the range of products
The CSRT indicated that the draft set of rules had three main objectives: to expand the range of products accessible to investors, to enhance product diversity in local capital markets and to establish consistent standards for hosting digital assets abroad.
It appears from the regulatory statement that this is not a direct approval of specific ETF products, but rather a system basis for subsequent product distribution. If the rules eventually land, it is expected that the Thai market will have regulated bitcoin and ETF.
The hosting requirement is a complementary focus.
In the encryption ETF structure, hosting arrangements are usually a key part of regulatory audits. On this occasion, the Thai Securities Commission incorporated into the draft the extraterritorial custodianship, demonstrating its concern not only for the product itself but also for the safe custody and compliance process in which the Fund holds digital assets.
This means that, in the future, if a fund company promotes the relevant products in Thailand, it needs to meet more explicit cross-border hosting requirements, in addition to the product design itself. For local capital markets, this is also a step towards integrating digital assets into traditional fund systems.