Thailand SEC Opens Public Comment on Draft Crypto ETF Regulations

Thailand’s Securities and Exchange Commission (SEC) announced a public comment period for draft regulations governing spot cryptocurrency exchange‑traded funds (ETFs). The initial focus is on bitcoin (BTC) and ethereum (ETH) funds, with a pathway for additional digital assets pending compliance with the proposed framework.

Scope of the Draft Rules

The SEC requires that any crypto ETF be operated by a licensed asset management company (AMC) and adhere to the same regulatory standards applied to existing ETFs on the Stock Exchange of Thailand (SET). The rules also incorporate the investment‑in‑digital‑assets requirements that apply to mutual funds, together with extra investor‑protection measures.

Eligibility and Future Expansion

Bitcoin and ethereum funds are designated as the first eligible products. The regulator indicated that, should the initial rollout be successful, other altcoin‑based funds could be considered in the future. Wrapped‑style funds are explicitly excluded from the initial launch.

Custody and Listing Requirements

While the SEC prefers domestic custody solutions, it allows foreign custodians if they meet “necessary and appropriate” criteria. All approved crypto ETFs must be listed and traded exclusively on the SET.

Comparison with Prior Approvals

In June 2024, the SEC approved the ONE Bitcoin ETF, which was limited to wealthy and institutional investors and did not hold physical bitcoin. The new draft rules aim to enable retail investors to access spot‑based bitcoin ETFs that hold actual BTC under Thai law.