Thailand prepares crypto ETF rules as institutional demand grows

Thailand’s Securities and Exchange Commission is drafting new rules to support crypto ETFs, futures trading and tokenised investment products.

SEC deputy secretary-general Jomkwan Kongsakul said guidelines for crypto ETFs are expected to be issued early this year.

“A key advantage of crypto ETFs is ease of access; they eliminate concerns over hacking and wallet security,”

Jomkwan Kongsakul said.

The regulator also plans to enable crypto futures trading on the Thailand Futures Exchange.

Digital assets will be recognised as an official asset class under the Derivatives Act.

The SEC said investors may allocate up to 5% of a diversified portfolio to cryptocurrencies.

Thailand aims to position itself as a regional crypto hub for institutional investors.

Retail crypto trading remains popular despite a ban on crypto payments.

The SEC said it will tighten oversight of financial influencers promoting investment products.

“Any recommendation related to securities or investment returns will require proper authorisation,”

Jomkwan Kongsakul said.

The regulator is working with the Bank of Thailand on a tokenisation sandbox for digital assets.

KuCoin Thailand was suspended earlier this month after breaching minimum capital requirements.