Thailand SEC to Implement Crypto ETF Regulations Early This Year

Thailand's Securities and Exchange Commission (SEC) is set to introduce formal rules for crypto exchange-traded funds (ETFs) this year, allowing regulated ETFs to launch domestically and providing investors with exposure without direct wallet or custody risk.

The SEC has approved the concept in principle and is finalizing conditions. Crypto will be treated as an asset class, with portfolio allocations capped at 5% for diversified investors.

Futures, Tokenization, and Market Structure

The SEC plans to enable crypto futures trading on the Thailand Futures Exchange.
Digital assets will be recognized under the Derivatives Act, with designated market makers improving liquidity.
A tokenization sandbox is being developed with the Bank of Thailand, encouraging bond token issuers to test regulated products.

Despite a ban on crypto payments, Thailand remains active in the crypto market. The largest exchange, Bitkub, records about $60 million in daily trading volume.
Monthly crypto turnover exceeds ฿100 billion, with USDT making up 52% and Bitcoin less than 20%. This structure may impact capital flows.

Baht Strength Triggers Senate Scrutiny

The baht gained around 9% against the US dollar in 2025, despite weak growth and trade deficits.
A Senate committee has called for testimony from the SEC, central bank, Anti-Money Laundering Office, and Bitkub regarding stablecoin trading impacts on the exchange rate.

Enforcement Tightens

The SEC is increasing oversight of financial influencers. Authorization will now be required for any investment recommendations linked to securities or returns.
Operations of KuCoin Thailand were suspended due to capital falling below minimum requirements, attributed to a shareholder dispute. KuCoin plans to apply for a digital-asset broker license once resolved.