Thailand SEC Drafts Rules for Bitcoin and Ether ETFs with Onshore Custody Priority
Thailand's Securities and Exchange Commission (SEC) is progressing its framework for spot Bitcoin and Ether exchange-traded funds (ETFs). The regulator has drafted rules for locally listed ETFs, which would initially limit eligible underlying assets to Bitcoin and Ether only. Each Thai-domiciled ETF would track a single crypto asset.
The draft regulations specify that Bitcoin and Ether ETFs would trade exclusively on the Stock Exchange of Thailand (SET), aligning with the country's established exchange infrastructure. The SEC also clarified how crypto ETFs could be used by other local investment vehicles, allowing mutual funds and private funds to invest in Thai-domiciled crypto ETFs.
The regulator is revising its approach to custody, keeping onshore digital-asset custodians as the primary custodians for crypto ETFs during the initial phase. The SEC may permit the use of qualified foreign DA custodians when necessary and appropriate. Foreign custodians used by mutual and private funds would need to be supervised by a regulatory authority with legal powers.