Thailand Drafts Crypto ETF Rules as Institutional Demand Rises

• Thailand’s SEC is set to release formal regulations on crypto ETFS early this year.
• Regulator to permit crypto futures trading on the TFEX and classify digital assets as recognized assets under the Derivatives Act.
• The SEC will toughen regulations against influencers and continue promoting tokenization through a joint sandbox with the Bank of Thailand.

Thailand is gearing up for a large-scale regulatory push to enhance institutional engagement with the world of digital assets, with its SEC finalizing regulations on crypto exchange-traded funds, crypto futures, and tokenized investment products. The move signals Thailand’s intent to position itself as a regional hub for regulated crypto finance, even as the country continues to restrict crypto payments.

SEC deputy secretary-general Jomkwan Kongsakul said the regulator plans to release formal guidelines supporting the establishment of crypto ETFs in Thailand early this year, according to a report by the Bangkok Post. The SEC believes ETFs can remove some of the biggest barriers for traditional investors, especially concerns over wallet management and security threats.

“A key advantage of crypto ETFs is ease of access; they eliminate concerns over hacking and wallet security, which has been a major barrier for many investors,” Kongsakul said.

Thailand’s SEC moves crypto ETFs from concept to execution

The SEC has already begun the approval of cryptocurrency ETFs in the abstract. It is completing the investment and operating models underlying the framework that will shape the structuring of the product, the custodian models in preserving the assets, as well as risk disclosure.

Cryptos are treated as “another asset class” and investors can allocate no more than 5% of their diversified portfolio to crypto exposure. This approach is meant to balance growth with risk management, making it easier to adopt cryptos within traditional wealth management. Since the supervision of the SEC, digital asset management has been considered “another asset class.”

Through this harmonization effort, Thailand can guide its market demand into regulated products rather than encouraging it to go into an overseas structure or an unregistered product.

Crypto futures trading on TFEX could expand institutional tools

The SEC has another upcoming task of regulating the use of crypto futures at the Thailand Futures Exchange (TFEX), alongside regulating the use of ETFs. The importance of this is that it gives institutions access to hedge tools, structured investment, and liquidity provision.

The SEC has also proposed the formation of market makers in an effort to enhance market liquidity and narrow spreads, whose impact might result in lower volatility and improved executions. In addition, Thailand will move toward recognizing digital assets as an official asset class under the Derivatives Act, creating stronger legal clarity for listed products and investor protections.

Retail demand stays strong despite payment restrictions

Thailand already has a strong crypto culture at the retail level. Although regulators still prohibit crypto payments, trading remains a popular activity. The biggest exchange in the country, Bitkub, reportedly processes around $60 million daily, and this is evidence enough that demand is not waning.

It is this retail participation that provides such a solid foundation for the Thai market. Now, what the regulators would like is for this infrastructure to extend into this more professional money flow, where the additional liquidity will come through the use of ETFS and futures contracts.

SEC tightens financial influencer rules

At the same time, the SEC is moving to clamp down on “financial influencers,” a category that has grown rapidly during the crypto boom. Kongsakul said any recommendation tied to securities or investment returns will require official authorization, either as an investment adviser or an introducing broker.

This policy aims to curb misleading promotions, reduce pump-style speculation, and push market education into regulated channels.

Tokenization sandbox expands alongside ETF push

Thailand is also collaborating with the Bank of Thailand on a tokenization sandbox. The SEC said it will encourage issuers of bond tokens to enter the sandbox, supporting experimentation with tokenized securities and blockchain-based settlement while staying inside a compliant structure.

This tokenization angle strengthens Thailand’s long-term strategy, since tokenized bonds and funds can attract institutional adoption beyond spot crypto trading.

KuCoin Thailand works to resolve the SEC suspension

On the other hand, the SEC in Thailand suspended KuCoin Thailand this month as the company’s capital was reported to have fallen below the required threshold for five successive days. KuCoin, however, clarified that the problem was due to a disagreement among its shareholders over increasing its capital.

KuCoin entered Thailand in June 2025 and now plans for its local unit to apply for a digital-asset broker license, which would expand its product offering under Thai rules.

Overall, there is a clear shift apparent in Thailand’s ETF and futures regulation plans, and that is Thailand is aiming to invite institutions to participate in the market via regulated and safer avenues, with a greater emphasis on market regulation and communication.

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