Thailand is taking another significant step toward integrating cryptocurrencies into its regulated financial system, as the Securities and Exchange Commission (SEC) advances draft rules for locally listed Bitcoin and Ethereum exchange-traded funds (ETFs).
The proposal represents a notable shift in Thailand’s digital-asset policy, providing investors with a regulated route to gain exposure to major cryptocurrencies through the country’s traditional capital markets.
On August 24, the Thai SEC opened a new public consultation covering draft regulations for crypto ETFs, alongside proposed revisions to requirements for foreign digital-asset custodians serving mutual and private funds.
The consultation follows an earlier round of feedback in April and May, during which most respondents supported the broader framework. The latest proposal is designed to expand investment opportunities while strengthening investor protection and the domestic digital-asset ecosystem.
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Under the proposed framework, the first generation of Thai crypto ETFs would focus exclusively on Bitcoin and Ethereum. Each ETF would be structured as a passive investment vehicle tracking a single underlying cryptocurrency rather than actively trading multiple digital assets.
The fund would also be required to maintain an average net exposure of at least 80% of its net asset value to the underlying cryptocurrency over its accounting year.
The decision to begin with Bitcoin and Ethereum reflects the SEC’s emphasis on liquidity, broad market acceptance, network security and investor protection. Rather than immediately opening the ETF market to a wide range of tokens.
The regulator appears to be pursuing a controlled approach that establishes a foundation around the two largest and most established cryptoassets.
A particularly important element of the proposal is custody. The SEC intends for crypto ETF assets to be held primarily with digital-asset custodians regulated in Thailand.
The revised framework gives the regulator greater flexibility to permit qualified foreign custodians when circumstances make such arrangements necessary or appropriate. This represents an attempt to balance domestic oversight with the operational realities of an increasingly international digital-asset market.
Trading would remain firmly connected to Thailand’s traditional financial infrastructure. The proposed ETFs would be listed and traded exclusively on the Stock Exchange of Thailand.
This could significantly simplify access to cryptocurrency exposure because they would be able to obtain Bitcoin or Ethereum exposure through securities accounts rather than managing wallets and private keys directly.
Investor protection is another central component. The SEC proposes education requirements, risk acknowledgments before trading and disclosures explaining the structure, investment mechanism, service providers and specific risks associated with crypto ETFs.
Financial intermediaries would also be expected to emphasize diversification and ensure investments are consistent with an investor’s risk tolerance and financial capacity. The development could have broader implications for Thailand’s financial sector.
Asset managers, custodians, brokers and other financial institutions could gain new opportunities as demand for regulated crypto investment products develops. The SEC also plans to allow Thai mutual and private funds to invest in locally domiciled crypto ETFs, subject to existing investment limits.
Public comments on the latest proposals are open until September 20. The final framework could therefore still change before implementation. Nevertheless, Thailand’s direction is increasingly clear: rather than treating Bitcoin and Ethereum solely as speculative digital assets.
Regulators are building mechanisms through which they can become part of the country’s conventional investment infrastructure. If finalized, Thailand’s crypto ETF framework could mark an important bridge between traditional finance and digital assets in Southeast Asia.
By combining regulated custody, exchange-based trading, strict exposure requirements and investor safeguards, the SEC is attempting to create a controlled pathway for mainstream cryptocurrency investment while keeping market risks under regulatory supervision.