Thailand’s securities watchdog is accelerating work on a full regulatory framework for crypto exchange‑traded funds, aiming to pave the way for a market launch around 2026 as part of a broader strategy to integrate digital assets into the country’s financial system.
The Securities and Exchange Commission (SEC) of Thailand is preparing formal rules that will allow asset managers to roll out crypto ETFs for local investors. Deputy secretary‑general Jomkwan Kongsakul confirmed that the regulator expects to publish detailed guidelines “early this year,” following an in‑principle approval of the product type.
According to Kongsakul, the SEC has already agreed on the basic concept of crypto ETFs and is now refining the technical requirements, including investment limits, asset custody standards, and operational procedures. The goal is to build a structure that mirrors the convenience of traditional ETFs while mitigating some of the practical and security risks associated with directly holding cryptocurrencies.
Thai regulators see crypto ETFs as an important gateway product: they offer ease of access and familiar investment mechanics while shielding retail investors from issues like private key management, hacking incidents, and wallet misconfigurations. For many individuals who are wary of managing digital wallets themselves, an ETF structure provides exposure to the asset class through a regulated, professionally managed vehicle.
Still, a smooth rollout will depend on close coordination among existing market players. Kongsakul emphasized that licensed digital asset exchanges and traditional asset management companies will need to work in tandem, sharing infrastructure, liquidity, and expertise. Exchanges bring trading depth and technological capacity, while asset managers contribute risk management frameworks, compliance, and investor‑facing products.
To prevent thin trading and excessive price swings in these new funds, the SEC is also evaluating ways to support liquidity. One option under review is the introduction of dedicated market makers—potentially regulated exchanges, financial institutions, or even corporations that already hold cryptocurrencies on their balance sheets—who would commit to providing continuous buy and sell quotes for ETF units.
Parallel to the ETF push, the SEC plans to fully recognize digital assets as an underlying asset class for derivatives traded on the Thailand Futures Exchange. By placing cryptocurrencies under the scope of the Derivatives Act, the regulator intends to legitimize crypto futures and options as standardized financial products subject to the same oversight, margin rules, and risk controls as other derivatives.
Crucially, the SEC wants digital assets to be treated like “another asset class” within a diversified portfolio rather than an outlier or speculative side bet. The regulator has floated the idea that investors might reasonably allocate up to 5% of their total holdings to crypto, framing it as a measured exposure level consistent with prudent diversification rather than all‑in speculation.
Another pillar of the strategy is tokenization. The SEC, in cooperation with the Bank of Thailand, is building a tokenization sandbox where issuers can test bond tokens and similar products under regulatory supervision. Authorities plan to actively encourage bond token issuers to enter this sandbox, allowing them to experiment with new structures while regulators observe, gather data, and adjust rules in real time.
One of the first major initiatives in this area involves the crypto exchange KuCoin, which the SEC has selected as the initial platform to participate in a government‑backed bond token project. This move signals that Thailand is willing to work directly with global crypto players to pilot tokenized securities and explore how distributed ledger technology can streamline issuance, settlement, and distribution.
Thailand’s more constructive stance toward digital assets began to crystallize last year. The Ministry of Finance introduced a five‑year exemption from capital gains tax on crypto transactions, explicitly positioning the country as a candidate for becoming a global digital asset hub. By reducing the tax burden on crypto trades, the government hopes to attract international investors, exchanges, and Web3 startups.
At roughly the same time, the SEC launched a consultation on updated listing requirements for coins and tokens offered on licensed Thai crypto exchanges. The review aims to set clearer standards for which digital assets are suitable for retail trading, balancing strong investor demand with concerns about scams, overly speculative tokens, and market manipulation. While Thailand continues to ban the use of crypto for routine payments, trading and investing remain widely popular, prompting regulators to refine guardrails rather than suppress activity.
Later in the year, Deputy Prime Minister Pichai Chunhavajira further elevated crypto in the national agenda, describing digital assets as a core building block in the modernization of the tourism sector’s financial infrastructure. Authorities believe blockchain‑based payments, loyalty tokens, and tokenized investment products tied to tourism projects could help Thailand better capture value from international visitors and cross‑border capital flows.
The contemplated ETF launch around 2026 fits neatly into this broader roadmap. By that time, regulators expect to have more mature rules on tokenized bonds, derivatives, exchange supervision, and investor protection, creating an ecosystem where crypto‑related products can coexist with traditional finance under a unified regulatory umbrella.
For investors, the emergence of crypto ETFs in Thailand could fundamentally change how they access the market. Instead of opening accounts at offshore exchanges or handling self‑custody wallets, individuals may be able to buy ETF units through the same brokerage accounts they use for stocks and bond funds, with holdings reflected in familiar statements and tax reporting frameworks.
Local asset managers are likely to see both opportunities and challenges. On one hand, crypto ETFs provide a new product class that can differentiate their offerings and attract younger, tech‑savvy clients. On the other, they will be forced to develop in‑house expertise in crypto market structure, custody solutions, counterparty risk, and on‑chain analytics to meet SEC expectations and reassure investors.
The banking sector and traditional financial institutions could also be pulled deeper into the digital asset space. If banks and large corporations step in as market makers or hold crypto on their balance sheets to support ETF liquidity, they will need robust risk models, compliance procedures, and governance structures to manage volatility, cybersecurity threats, and evolving accounting standards.
From a macroeconomic perspective, Thailand’s strategy reflects a calculated attempt to harness growth from the on‑chain economy while keeping systemic risks in check. By channelling retail demand into regulated vehicles such as ETFs and exchange‑listed derivatives, the SEC hopes to reduce the prevalence of unregulated platforms where consumer protections are minimal and transparency is limited.
The tokenization sandbox and bond token projects, meanwhile, are designed to test whether blockchain can make capital markets more efficient—reducing issuance costs, enabling fractional ownership of assets, and shortening settlement cycles. If successful, this could eventually extend beyond bonds to include real estate, infrastructure projects, and other forms of long‑term investment that are traditionally hard to access for smaller investors.
Nevertheless, Thailand’s regulatory ambitions come with complex implementation questions. The SEC will need to decide how to treat custody risks in detail—whether to mandate cold storage, insurance coverage, multi‑signature controls, or use of specialized custodians. It must also address how ETFs will handle forks, airdrops, staking rewards, and other uniquely crypto events that have no direct equivalent in traditional asset classes.
Consumer education is another critical factor. Regulators have signaled they want people to view crypto as a limited portfolio slice, not a get‑rich‑quick scheme. That will likely require sustained campaigns explaining volatility, long‑term risk, diversification principles, and the differences between investing via regulated funds and trading on high‑risk platforms that promise unrealistic returns.
Thailand’s approach is also being closely watched across the region. As more jurisdictions debate how to handle spot crypto ETFs, derivatives, and tokenized securities, the way Thailand balances innovation and investor protection may serve as a reference point. A successful rollout could attract foreign capital and fintech talent, while major missteps could trigger policy reversals or stricter enforcement.
In the coming years, the interplay between the SEC, the Bank of Thailand, the Ministry of Finance, and the private sector will determine whether the country can turn its pro‑crypto rhetoric into a resilient, well‑regulated digital asset market. If the SEC meets its timeline and the supporting infrastructure matures as planned, Thai investors could be participating in locally listed crypto ETFs and trading regulated crypto futures by 2026, with tokenized bonds and other on‑chain instruments forming an increasingly important part of the nation’s financial landscape.