Thai SEC Issues Draft Regulations for Spot Bitcoin and Ether ETFs

Thailand's Securities and Exchange Commission (SEC) has advanced its framework for locally listed spot Bitcoin and Ether exchange-traded funds (ETFs), issuing draft regulations while revising its approach to foreign digital asset custodians.

The regulator is seeking feedback on two consultation papers: one containing draft regulations for Thai crypto ETFs, and the other proposing principles governing the qualifications of foreign digital asset custodians engaged by mutual and private funds investing in digital assets.

During the initial stage, asset managers could establish passive ETFs tracking Bitcoin (BTC) or Ether (ETH), the only two eligible crypto assets. The proposed rules would allow these ETFs to trade exclusively on the Stock Exchange of Thailand (SET).

The draft regulations follow an April consultation on the framework's broader principles, which most respondents supported but provided feedback on custody arrangements, prompting the regulator to revise its proposed approach.