Until now, Thai funds could only invest in crypto ETFs issued abroad. The Thai SEC said current investment limits remain in place. The SEC issued the framework on October 8, via 11 regulatory notifications. For now, only bitcoin and ether are eligible. Any future additions will be contingent on liquidity, market acceptance, blockchain network security and investor protection, the regulator said. In the initial stage, depositary receipts related to international crypto ETFs are not permitted.

Thai SEC lists conditions to make transactions

Brokers still can’t facilitate foreign crypto ETF investments by clients outside the institutional and ultra-high-net-worth cohorts. Nirun Fuwattananukul, CEO of Binance Thailand, said that buying via an existing brokerage account removes a hurdle for investors wary of exchange accounts and wallets. Before any launch, issuers still require fund registration, product approval, a SET listing and custody, he said.

October 16 is the date the framework takes effect, not a confirmed first trading day. Each fund is a passive vehicle that follows the price of a single coin. It must hold at least 80% of its net asset value in that coin, averaged over each accounting year. Custody goes to the SEC-regulated digital asset custodians. Delegated custody still must take place with a licensed custodian, and the SEC retained the option to permit qualified foreign custodians when necessary.

The funds only trade on the SET. Securities firms cannot lend to customers on margin to buy the funds. Each buyer gets product disclosures first and must acknowledge the risks. Companies also need to caution against overexposure to digital assets. Asset managers can only outsource investment management to licensed digital asset fund managers. Qualified digital asset firms can be fund supervisors if they satisfy standards on finances, staff and operations.

The Thai SEC sought public comment on core principles in April and May and draft rules in August and September. Responses ran mostly in favor, the SEC said. Cryptopolitan reported in August that the draft already incorporated the two-coin limit and 80% floor. Crypto ETFs were approved in principle, said SEC deputy secretary-general Jomkwan Kongsakul in January.

In June 2024, Thailand approved its first spot bitcoin ETF, but only for institutional investors. Crypto gains also face a 0% capital gains rate from January 1, 2025, through the end of 2029. With 20% versus 13% in the U.S., Thailand is said to have the most crypto users per capita in the world.

The post Thai mutual funds cleared to buy local BTC and ETH ETFs from October 16 first appeared on Coinfea.

Legal proceedings and court rulings

The recent court ruling annulled a prior decision by the High Court in Podgorica, which had dated back to December 29, 2023. This move sends the case back to the first instance for a retrial, highlighting procedural flaws cited by the Appellate Court. Specifically, the court pointed out “significant violations of the provisions of criminal procedure” in the previous extradition decision, emphasizing the unclear and incomprehensible wording that led to the appeal’s acceptance.

This is not the first time Montenegro’s judiciary has halted Kwon’s extradition. In mid-December 2023, the Appellate Court had previously canceled an extradition approval, deferring the final decision to the country’s minister of justice. These judicial reversals reflect Kwon’s complex legal landscape, underscored by the global attention following the Terraform Labs controversy.

The Terraform Labs controversy and global legal challenges

Do Kwon, alongside Terraform Labs, has been at the center of intense regulatory scrutiny following the dramatic collapse of the Terra ecosystem, which resulted in billions of dollars in investor losses. Accusations of orchestrating a massive fraudulent scheme have led to legal challenges in multiple jurisdictions. Kwon’s arrest in Montenegro in March 2023, for using falsified travel documents, added to the international legal complexities surrounding his case. In May, he was released from jail on a $436,000 bail while awaiting trial. Later, in June, he was convicted of document forgery by a Montenegro court and sentenced to four months in prison. He appealed the decision, but unfortunately lost the case and was ultimately sentenced to four months in November.

The judicial decisions in Montenegro come amidst ongoing trials and legal proceedings against other Terraform Labs executives. Notably, the extradition of former CFO Han Chang-joon to South Korea on February 5 represents a continued effort to hold the company’s leadership accountable. 

The post Thai SEC files charges against former Zipmex Thailand CEO first appeared on Coinfea.