Thailand Rewrites Rules to Favor Domestic Crypto Firms

Thailand's Securities and Exchange Commission (SEC) is rewriting its stock exchange rules to give domestic fund managers, the Stock Exchange of Thailand, and locally regulated custodians a structural advantage in the country's burgeoning crypto market.

The proposal centers around a framework for Bitcoin and Ethereum exchange-traded funds (ETFs), which would allow passive, single-asset funds focused on these assets. These funds would need to maintain an average net exposure of at least 80% of their net asset value to the chosen asset over an accounting year.

The proposed products would enter a market already validated by the success of crypto ETFs in the United States, where funds have attracted more than $60 billion in net inflows since launch. Bitcoin ETFs dominate with about $54 billion, followed by Ethereum products with roughly $12 billion, while newer crypto ETF offerings account for the balance.

The proposal would make locally domiciled ETFs the most direct retail route under the framework, while preserving some existing access to foreign products. Investors would also face product-risk education and acknowledgment requirements before trading, while intermediaries would be expected to assess diversification, risk tolerance, and financial capacity.