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Thailand’s securities regulator plans to issue formal guidelines for cryptocurrency exchange-traded funds early this year, opening the door to regulated digital asset investment products for institutions while maintaining the country’s ban on crypto payments.
The Securities and Exchange Commission has approved crypto ETFs in principle and is finalizing operational requirements that would allow investors to allocate up to 5% of portfolios to digital assets through familiar investment vehicles, Deputy Secretary-General Jomkwan Kongsakul said this week.
Speaking this week, SEC deputy secretary-general Jomkwan Kongsakul said the regulator plans to issue guidance supporting the establishment of crypto ETFs “early this year,” outlining a framework that prioritizes investor protection, accessibility, and regulatory clarity.
The move comes as Thailand balances strong domestic interest in crypto trading with long-standing restrictions on the use of digital assets for payments.
“A key advantage of crypto ETFs is ease of access; they eliminate concerns over hacking and wallet security, which has been a major barrier for many investors,” — Jomkwan Kongsakul, Deputy Secretary-General, Thailand SEC.
At the core of the SEC’s initiative are Thailand crypto ETF rules designed to make digital assets accessible through familiar financial products.
By allowing ETFs backed by cryptocurrencies, regulators hope to attract institutional capital that has so far remained cautious due to custody, compliance, and operational risks associated with direct token ownership.
According to Kongsakul, the SEC board has already approved crypto ETFs in principle and is now finalizing detailed investment and operational requirements.
Under the proposed Thailand crypto ETF rules, digital assets would be treated as “another asset class,” allowing investors to allocate up to 5% of a diversified portfolio to crypto-linked products.
Beyond ETFs, the regulator plans to enable crypto futures trading on the Thailand Futures Exchange (TFEX), bringing derivatives tied to digital assets under a regulated domestic venue.
Other initiatives include establishing designated market makers to ensure liquidity and formally recognizing digital assets under the country’s Derivatives Act.
Thailand’s approach reflects a broader regional trend in Asia, where regulators are increasingly favoring regulated investment vehicles over unlicensed spot trading.
Despite a ban on crypto payments, retail trading remains popular in the country, with local exchange Bitkub reportedly seeing daily volumes around $60 million. Officials believe Thailand crypto ETF rules could channel that interest into safer, supervised products.
Alongside market expansion, Thailand crypto ETF rules are being paired with stricter oversight of market conduct, particularly in the area of financial promotions.
The SEC has moved to tighten controls on so-called “financial influencers,” whose social media commentary has increasingly shaped retail investor behavior.
“Any recommendation related to securities or investment returns will require proper authorisation as either an investment advisor or introducing broker,” — Jomkwan Kongsakul, Deputy Secretary-General, Thailand SEC.
The regulator says the measure is intended to curb misleading promotions and align crypto-related commentary with standards already applied to traditional financial products.
Under the new approach, influencers discussing crypto ETFs, futures, or tokenized products would fall under the same compliance expectations as licensed professionals.
In parallel, the SEC is working with the Bank of Thailand on a tokenization sandbox that would allow issuers to test blockchain-based financial instruments in a controlled environment.
Bond token issuers, in particular, will be encouraged to enter the sandbox as part of efforts to modernize capital markets infrastructure.
Together, these initiatives signal that Thailand crypto ETF rules are not a standalone reform but part of a broader regulatory overhaul aimed at integrating digital assets into the formal financial system without sacrificing oversight.
Even as Thailand crypto ETF rules move forward, enforcement actions against existing market players highlight the regulator’s emphasis on compliance.
Earlier this month, the Thai SEC suspended operations at KuCoin Thailand after the exchange’s capital fell below minimum regulatory requirements for five consecutive days.
KuCoin Thailand attributed the shortfall to a shareholder dispute between Singapore-based CI Group and KuCoin Global, which delayed approval of a planned capital increase.
The company said the issue did not reflect underlying liquidity problems and emphasized its intention to resolve the matter promptly.
KuCoin, which entered the Thai market in June 2025, is also preparing to apply for a digital-asset broker license that would allow it to offer a broader range of regulated products.
The case underscores how Thailand crypto ETF rules and related reforms are likely to raise the compliance bar for both domestic and foreign operators.
For policymakers, the timing is critical. By advancing Thailand crypto ETF rules while enforcing capital and licensing standards, regulators aim to attract institutional investors without repeating the excesses that have plagued unregulated crypto markets elsewhere.
As the SEC finalizes its guidelines in the coming months, market participants will be watching closely to see whether Thailand crypto ETF rules can strike the intended balance: opening the door to innovation and institutional capital while maintaining investor protection and financial stability.
