Thailand's SEC Proposes Crypto ETF Framework Favoring Domestic Institutions
Thailand's Securities and Exchange Commission (SEC) has released a draft framework for crypto exchange-traded funds (ETFs), which would allow passive ETFs tracking Bitcoin or Ethereum as single-asset products. The proposal, open for public comment until September 20, outlines rules that prioritize domestic financial institutions and limit direct retail access to overseas-linked crypto ETFs.
Under the proposed framework, newly created crypto ETFs would be listed exclusively on the Stock Exchange of Thailand (SET). Custody of the underlying digital assets must be entrusted primarily to local custodians regulated by Thailand's SEC. This arrangement gives domestic asset managers and custodians a competitive edge in the emerging market.
The proposal channels investment flows into locally listed products, enhancing market depth and liquidity on the SET. It also provides Thai investors with a regulated and familiar investment vehicle for cryptocurrency exposure. However, some market participants have expressed concerns that the restrictions may limit choice and potentially lead to higher fees compared to international alternatives.