Thailand’s Crypto ETF Plans: Will They Crash or Cash In?

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  • The Thai SEC is about to drop a treasure map for crypto ETFs, but only if you can read hieroglyphs.
  • Investors will be allowed to allocate up to 5% of their portfolios-because nothing says “financial freedom” like a 5% limit.
  • Thai authorities will also tighten oversight on financial influencers, because nothing says “trust us” like a license for your crypto advice.

Thailand is now the main crypto hub in Southeast Asia. Or at least, it’s the only place where “regulatory framework” sounds like a fancy way of saying “we’re making this up as we go.”

The country’s SEC is currently drafting new rules to support crypto ETF products and futures trading. If passed, these new rules will give institutional investors a safe way to enter the market. Or, as we like to call it, “the Thai equivalent of a casino with a dress code.”

Regulatory Framework for the New Crypto ETF

Jomkwan Kongsakul, the deputy secretary-general of the SEC, recently shared that the regulator wants to issue formal guidelines for crypto ETFs early this year. Because nothing says “trust us” like a document written in a language that doesn’t exist.

The main goal is to make digital assets easier to reach for more investors. The problem used to be that many investors worried about hacking or losing access to their wallets. Now, they’ll worry about losing access to their wallets and their sanity.

To this end, Thailand’s new regulated fund is expected to remove these barriers. Or, as critics call it, “a fancy way to charge more fees.”

THAILAND MOVES TO SUPPORT CRYPTO INVESTMENTS

Thailand’s ‘SEC’ says new rules are coming for crypto ETFs, crypto futures, and tokenized investments, formally recognizing digital assets as an official asset class under the law. – Coin Bureau (@coinbureau)

The SEC board has already approved some of the core aspects of this plan. Right now, they are finalising the specific rules for how these products will operate. Because nothing says “efficiency” like spending months on paperwork.

This includes how companies should handle investments and daily operations. The regulator also plans to treat digital assets as a standard asset class, and under these rules, investors can invest up to 5% of their portfolio. Because nothing says “generosity” like a 5% cap.

Trading Futures on the Thailand Futures Exchange

The SEC also wants to enable crypto futures trading. This will happen on the Thailand Futures Exchange (or TFEX) as part of a plan to recognise digital assets under the Derivatives Act. Because nothing says “innovation” like a name that sounds like a 1980s synth band.

The government hopes that by doing this, these assets will get official legal status. Or, as skeptics say, “a fancy way to say ‘we’re pretending this isn’t a scam.'”

Market makers are expected to be a big part of this new system. The SEC is planning to establish these entities and make sure there is enough liquidity in the market. Because nothing says “confidence” like a bunch of people pretending to care about your money.

When there is liquidity, prices stabilize and traders can exit or enter positions more freely. Or, as the SEC puts it, “we’re not sure what we’re doing, but let’s act like we are.”

Protecting Investors from Financial Influencers

Regulators are also looking at social media. The SEC is tightening its grip on financial influencers who give investment advice, which means that anyone who recommends specific securities or promises returns must have a license. Because nothing says “safety” like a bureaucracy that takes six months to process a form.

They must also register as an investment advisor or an introducing broker. This step is expected to prevent just anybody with a large following from misleading the public. Or, as the public says, “finally, a rule that makes sense.”

Thailand already has a very active retail trading space with Bitkub being the largest exchange in the country. It often sees daily trading volumes reach $60 million. But don’t worry-your crypto is safe, unless you’re using it to buy a latte.

However, while people can trade easily, the government still has a ban on using digital coins for daily payments. Because nothing says “progress” like banning your own currency.

Testing in a Regulatory Sandbox

The SEC is collaborating with the Bank of Thailand on this project by building a tokenisation sandbox. This environment allows companies to test bond tokens without facing full regulatory pressure immediately, and the SEC wants to encourage bond issuers to join this sandbox. Because nothing says “innovation” like a sandbox that’s also a trap.

This initiative will help the government understand how blockchain technology affects the bond market. It will also allow the SEC to adjust rules before they become permanent law. Because nothing says “flexibility” like changing your mind 100 times before you even start.

In all, the next few months will be busy for the SEC as they must finish the operational rules and share them with the public. Once the guidelines are out, local firms can start applying to launch their own funds. Or, as the SEC puts it, “we’re not ready, but let’s act like we are.”

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2026-01-22 13:25