Thailand Open To Institutional Investors, Limits Retail Access: Binance Thailand CEO

In a post published on Friday, Binance Thailand CEO Nirun Fuwattananukul said that Thailand’s digital assets market is transitioning from retail to institutional investors. The shift is part of the country’s strategy to position itself as Southeast Asia’s hub for digital assets.

Thailand’s financial regulator has enabled asset management companies to invest in US spot bitcoin ETFs for accredited investors.

According to Fuwattananukul, recent regulatory changes made by Thailand’s Securities and Exchange Commission (SEC) play a key role in making the country’s crypto market more mature.

Open Market

Thailand is actively fostering a regulatory environment conducive to institutional investment in digital assets. The government has implemented comprehensive regulatory frameworks and tax incentives to attract institutional players, while initiatives like the Digital Asset Regulatory Sandbox aim to facilitate innovation and integration of new financial technologies.

The SEC now allows ultra-high-net-worth individuals to invest in US spot Bitcoin ETFs, following rule amendments in March. Not only that, the financial regulator has recently proposed rules allowing institutional-grade mutual and private funds to invest in crypto products, including US-listed spot crypto ETFs.

“By allowing more institutional funds to participate, the SEC is enabling a diverse range of investment strategies and helping digital assets gain broader acceptance in the mainstream,” Binance Thailand’s CEO said.

“This is not just about legitimising Bitcoin — it’s about creating a more mature ecosystem where traditional finance and digital assets coexist,” he added.

Increased participation from institutional investors will lead to higher liquidity and more stable prices in the crypto market. The establishment of a framework for digital assets will also enhance investor protection and market standardization.

More Regulation

Fuwattananukul believes the move will enable faster adoption of blockchain technologies in Thailand, increasing financial inclusion and competitiveness for Thailand. These will eventually help position Thailand as a regional digital asset hub.

In addition to safer investment, Thai investors will benefit from access to new asset classes like Bitcoin ETFs for easier portfolio diversification, potential for strong risk-adjusted returns and a hedge against market fluctuations.

While the country has taken steps to regulate and allow certain types of digital asset investments, it has maintained restrictions on retail investors’ direct access to these investments. Retail investors can still trade cryptocurrencies, but they cannot directly participate in spot Bitcoin ETF investments.

The focus on institutional investment is likely to grow as it reflects ongoing trends across other digital asset markets. In the U.S., the launch of spot Bitcoin and Ether ETFs has so far unlocked huge liquidity from institutional investors.

But those spot funds are only the first step to pave the way for diverse offerings. The U.S. SEC just approved options trading on spot Bitcoin ETFs this month.

Nate Geraci, president of the ETF Store, suggested there would be more developments in Bitcoin ETFs, including covered call strategies and other defined outcome products. These potential offerings would help protect investors against big down moves and maximize up moves.

The Binance executive also focuses on the tokenization trend and its potential to bridge the gap between traditional and digital assets. He notes that traditional banks are increasingly exploring the conversion of conventional assets into blockchain-tradeable digital assets, with tokenization of real-world assets being the key factors in this convergence.

Tokenizing RWAs is the process of converting traditional assets like bonds, real estate, or equities into digital tokens that can be traded on blockchain networks. The process can offer several benefits, including increased liquidity, 24/7 trading, and cross-border accessibility.

The tokenization of real-world assets (RWA) has been embraced by numerous financial giants, like BlackRock and Franklin Templeton as they believe it can help streamline financial processes, reduce costs, and expand investment opportunities. These entities are also among the pioneering spot crypto ETF adopters.