Thailand’s financial regulator is preparing a new framework for crypto exchange-traded funds, futures trading and tokenized investment products, signalling a shift toward institutional participation in the country’s digital-asset market.
Officials say formal guidelines could arrive early this year, positioning Thailand among Asian jurisdictions that are building regulated access to crypto for traditional investors.
Regulators prepare new crypto investment framework
The country’s Securities and Exchange Commission is drafting rules that would support the launch of crypto ETFs and related products, according to comments from deputy secretary-general Jomkwan Kongsakul reported by Bangkok Post.
Kongsakul said crypto ETFs could lower entry barriers by reducing concerns about wallet security and hacking risks, which have historically discouraged many investors from direct crypto ownership.
Beyond ETFs, the regulator plans to enable crypto futures trading on the Thailand Futures Exchange and introduce market-maker mechanisms to improve liquidity. Authorities are also exploring recognition of digital assets as an official asset class under Thailand’s derivatives laws.
Institutional ambition amid retail dominance
Thailand’s push reflects a broader strategy to attract institutional capital while maintaining strong retail participation in crypto markets. The country has one of Southeast Asia’s most active trading communities, with the largest local exchange, Bitkub, reporting daily trading volumes of roughly $60 million.
Despite this activity, crypto payments remain restricted, highlighting the government’s cautious approach toward everyday crypto use even as it expands regulated investment options.
The SEC has indicated that crypto could be treated as “another asset class” in portfolio construction, with investors allowed to allocate up to 5% of diversified portfolios to digital assets under proposed rules.
Stricter oversight of financial influencers
Alongside product innovation, regulators are tightening supervision of crypto-related marketing and investment advice. Officials said any recommendations about securities or investment returns will require proper authorization, such as registration as an investment adviser or introducing broker.
This move aims to address growing concerns about misinformation and speculative promotion in digital-asset markets, particularly on social media platforms.
Tokenization sandbox and collaboration with central bank
The SEC is also working with the Bank of Thailand on a tokenization sandbox designed to test new digital-asset use cases under regulatory supervision. Authorities plan to encourage issuers of bond tokens to participate in the sandbox, signalling interest in expanding tokenized financial instruments beyond cryptocurrencies.
KuCoin Thailand case highlights regulatory pressure
The regulatory push comes amid enforcement actions against crypto firms operating in Thailand. Earlier this month, the SEC suspended operations of KuCoin Thailand after its capital fell below minimum requirements for five consecutive days.
KuCoin attributed the issue to a shareholder dispute that delayed approval of a planned capital increase rather than underlying liquidity problems. The company has said it intends to seek a digital-asset broker license in Thailand, which would allow it to offer a broader range of products.
Why this matters now
Thailand’s emerging crypto ETF framework reflects a balancing act between market expansion and regulatory control. By opening the door to institutional-grade crypto products while tightening oversight of influencers and exchanges, regulators appear to be shaping a more structured digital-asset ecosystem.
If implemented as planned, the rules could accelerate institutional adoption in Thailand while setting a regulatory model for other Southeast Asian markets.
At the same time, the combination of stricter compliance requirements and new investment channels suggests that the next phase of Thailand’s crypto market will be driven less by retail speculation and more by regulated financial infrastructure.
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