Thailand's SEC Proposes Framework for Domestic Crypto ETFs
The Securities and Exchange Commission (SEC) of Thailand has proposed a regulatory framework for Bitcoin and Ethereum exchange-traded funds (ETFs). The framework, which is open for public comment until September 20, would permit the creation of passive ETFs tracking these two cryptocurrencies as single-asset products. The proposal favors domestic financial institutions and limits direct retail access to overseas-linked crypto ETFs.
Under the proposed rules, newly created crypto ETFs would be listed exclusively on the Stock Exchange of Thailand (SET). Custody of the underlying digital assets would need to be entrusted primarily to local custodians regulated by Thailand's SEC. This arrangement is designed to give domestic asset managers and custodians a competitive edge in the emerging market.
Thai-licensed entities such as Rakka Digital and Orbix are expected to benefit significantly from this framework, as they are already positioned to offer compliant custody and fund management services. The framework's emphasis on domestic custody and listing could simplify regulatory oversight and investor protection, but some market participants have expressed concerns that the restrictions may limit choice and potentially lead to higher fees compared to international alternatives.
The final rules are expected to take effect in the second half of 2026, following the public consultation period. This timeline gives stakeholders ample opportunity to provide feedback and adjust their business models accordingly.