Thailand Favors Domestic Crypto ETFs in New Proposal

Thailand's Securities and Exchange Commission (SEC) has proposed new rules for cryptocurrency exchange-traded funds (ETFs), which would favor domestic fund managers, the Stock Exchange of Thailand, and locally regulated custodians.

The proposal aims to bring the model used in the US onshore while keeping much of the value chain inside the country. Locally established crypto ETFs would trade only on the Stock Exchange of Thailand, with their assets initially held primarily by digital-asset custodians regulated by the Thai SEC.

The proposed framework would give local Thai firms an advantage, making them the most direct retail-facing route under the new rules. However, it's worth noting that this does not amount to a ban on foreign crypto products; mutual and private funds can already invest in overseas crypto ETFs under existing rules.

Investors would face product-risk education and acknowledgment requirements before trading, while intermediaries would be expected to assess diversification, risk tolerance, and financial capacity. Comments close on September 20, with the SEC expecting related rules to take effect later in 2026 but no ETF launch date has been set.