Thailand Drafts Cryptocurrency ETF Framework Amid Growing Institutional Demand
New regulations for crypto ETFs and futures trading are being developed by Thailand's SEC as the nation seeks to establish itself as a leading regional cryptocurrency hub for institutional players.
New regulatory frameworks are being developed by Thailand's Securities and Exchange Commission to facilitate crypto exchange-traded funds (ETFs), futures trading in cryptocurrencies, and investment products based on tokenization.
According to a Thursday report from the Bangkok Post, Jomkwan Kongsakul, the SEC's deputy secretary-general, announced that formal guidelines enabling the creation of crypto ETFs in Thailand would be released "early this year" by the regulatory body.
"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,"
Kongsakul said
Additionally, the SEC is working to regulate and facilitate crypto futures trading through the Thailand Futures Exchange (TFEX). Other significant initiatives in development include the establishment of market makers to provide liquidity and the formal recognition of digital assets as an official asset class within the framework of the Derivatives Act.
As the nation positions itself to attract institutional investors as a regional cryptocurrency hub, retail trading continues to thrive despite existing prohibitions on crypto payments. Bitkub, the nation's leading exchange platform, currently processes approximately $60 million in daily trading volumes.
Tighter rules for financial influencers
According to Kongsakul, the SEC's board has granted approval in principle for crypto ETFs and is currently in the process of finalizing the investment guidelines and operational requirements.
According to the SEC's framework, cryptocurrency will be designated as "another asset class," and investors will be permitted to allocate as much as 5% of a diversified investment portfolio to digital assets.
Regulatory oversight is being strengthened for so-called "financial influencers," with Kongsakul stating that "any recommendation related to securities or investment returns will require proper authorisation as either an investment advisor or introducing broker."
Furthermore, the agency is working in partnership with the Bank of Thailand on developing a tokenization sandbox environment, and according to Kongsakul, the SEC "will encourage issuers of bond tokens to enter the regulatory sandbox."
KuCoin Thailand moves to resolve the SEC suspension
In related developments, KuCoin Thailand's operations were suspended by the Thai SEC in early January following its capital dropping below minimum requirements for five consecutive days, according to a Wednesday report from local news source The Nation.
According to the company's statement, the capital shortfall resulted from an ongoing shareholder dispute involving Singapore's CI group and KuCoin Global, which blocked approval of a planned capital injection, rather than stemming from genuine financial liquidity challenges.
Having entered the Thai market in June 2025, KuCoin is additionally preparing for its local operation to submit an application for a digital-asset broker license, which the company states would enable it to provide a broader array of financial products and services.