Thailand is preparing to integrate crypto assets into the country's official financial system with a clearer framework. The Thailand Securities and Exchange Commission (SEC), the country's capital market regulator, plans to implement a new regulatory package this year covering crypto exchange-traded funds (ETFs) and crypto futures. This development was reported by the local newspaper Bangkok Post. According to the report, the SEC is working on detailed rules that will allow the establishment of crypto ETFs and the trading of crypto futures products on official markets. The new regulations are expected to be announced in the first few months of the year, but a clear timeline has not yet been shared. Nevertheless, it is stated that the regulatory body has given its approval in principle to crypto ETFs and that investment and operational details are being finalized. SEC Vice Chairman Jomkwan Kongsakul emphasizes that crypto ETFs offer a significant advantage for investors. According to Kongsakul, these products eliminate the direct need for crypto asset custody, reducing concerns about wallet security and cyberattack risks. This approach aims to facilitate the entry of institutional and more cautious investors into the crypto markets.
Thailand Prepares to Position Crypto as an Official Asset Class
Under the new framework, the Thai SEC plans to treat crypto assets as “another asset class.” This would allow investors to allocate a maximum of 5% of their diversified portfolios to digital assets. The aim is to create a controlled and limited investment space for crypto without completely liberalizing access.
In addition to ETF steps, crypto futures are also a significant part of the regulatory agenda. According to the planned structure, crypto futures will be traded under the Thailand Futures Exchange (TFEX) and in accordance with the Futures Act. Kongsakul states that these products will offer investors hedging and more advanced portfolio management opportunities. Furthermore, the recognition of crypto assets as an official underlying asset under the Derivatives Act is also being considered. Thai authorities are not limiting themselves to ETFs and futures. The SEC is also taking steps in the field of tokenization and is working with the Bank of Thailand on a regulatory “sandbox” environment. This structure aims to test tokenized bonds and similar products in a controlled environment. The goal is to support blockchain-based issuance models while limiting the risks of unsupervised retail distribution.
On the other hand, regulatory expansion also brings a stricter approach to oversight. The Thai SEC plans to increase oversight, particularly regarding investment advice given via social media and "financial influencer" activities. Accordingly, individuals providing guidance on securities or investment returns will be required to have the status of an authorized investment advisor or broker.
This regulatory transformation coincides with a critical period for market participants. Recently, KuCoin Thailand was temporarily suspended by the SEC due to capital adequacy issues. The company argues that the problem stemmed from a shareholder dispute and that there was no liquidity problem. Nevertheless, the crypto market in Thailand remains vibrant. Daily trading volumes on Bitkub, the country's largest exchange, hover around $60 million.
