SEC seeks public comments on principles for the establishment and regulatory framework of crypto ETFs in Thailand

Bangkok, 10 April 2026 - The Securities and Exchange Commission (SEC) is seeking public comments on the principles regarding the establishment and regulatory framework for crypto exchange traded funds (crypto ETFs) in Thailand. The proposed framework covers, among other matters, the delegation of digital asset investment management for mutual funds and the principles governing the appointment of trustees for crypto ETFs. The objective is to expand investment options for investors, strengthen the capabilities of business operators, promote product diversity in the Thai capital market, and support the development of a more robust crypto ETF ecosystem.

The SEC has continuously monitored developments in the digital asset market and regulatory approaches in overseas jurisdictions. Foreign regulators (such as those in the United States, Canada, Australia, and the Hong Kong Special Administrative Region of the People's Republic of China) have issued regulatory frameworks to support the establishment of crypto ETFs under clear regulatory regimes. This reflects the growing recognition of crypto as an investable asset class and as an additional means for investors to diversify their portfolios.

Accordingly, the SEC has proposed issuing regulations to support the establishment of crypto ETFs in Thailand in order to expand investment options for investors, particularly those seeking exposure to crypto assets through mutual fund mechanisms, with professional fund managers responsible for investment management and custody arrangements. This initiative also aims to enhance the capabilities of Thai business operators and support the further development of a robust crypto ETF ecosystem, while adhering to the principles of investor protection and maintaining capital market stability.

The SEC Board and the Capital Market Supervisory Board, at their meetings in December 2025 and February 2026, respectively, resolved to proceed with the development and issuance of regulations to support the establishment of crypto ETFs in Thailand, together with amendments to the rules governing the delegation of digital asset investment management for mutual funds.

In this regard, the SEC has proposed revisions to the relevant regulations to allow digital asset custodians (DA Custodians) and other digital asset business operators with adequate readiness to act as trustees for crypto ETFs. The key principles are summarized as follows:

1. Principles supporting the establishment of crypto ETFs

In the initial phase, the SEC proposes promoting the establishment of spot crypto ETFs in the form of mutual funds that invest directly in crypto assets with a straightforward structure, enabling investors to clearly understand the product characteristics and associated risks. The funds will be managed by asset management companies (AMCs), with crypto custody undertaken by specialized service providers.

Crypto ETFs will be required to comply with the existing regulations applicable to general ETFs, as well as the rules governing mutual funds investing in digital assets. In addition, the SEC proposes the following supplementary principles to enhance investor protection:

1) AMCs intending to establish crypto ETFs must demonstrate readiness in terms of personnel, operational systems, and relevant service providers to ensure stable, secure, and orderly fund operations;

2) Crypto ETFs must be established and managed under a passive management approach to track the price movements of crypto assets, with an average net crypto exposure to a single crypto asset of not less than 80 percent of the fund's net asset value (NAV) over the accounting year. The SEC will specify the types of crypto assets eligible for investment, which must be highly liquid and generally accepted crypto assets. In the initial phase, eligible crypto assets in the initial phase shall include Bitcoin and Ethereum;

3) Crypto assets of the fund must primarily be held with DA Custodians regulated by the SEC, in order to enhance investor protection and improve the effectiveness of legal enforcement;

4) Crypto ETFs shall be listed and traded exclusively on the Stock Exchange, and additional investor protection measures shall be implemented, such as investor education initiatives, confirmation of investors' understanding of risks prior to trading, and emphasis on appropriate investment principles, including avoiding excessive concentration in crypto assets and ensuring investments are aligned with the investor's risk tolerance;

5) Other related requirements include ensuring adequate disclosure by AMCs to enable investors to understand the fund's characteristics, risks, and structure, as well as amendments to allow mutual funds and private funds to invest in Thai crypto ETFs, whereas previously such investments were permitted only in foreign crypto ETFs, while remaining subject to the existing investment limits.

In addition, to support the development of crypto ETFs and strengthen the capabilities of Thai business operators, during the initial phase the SEC will not permit the issuance, establishment, or offering for sale of alternative products related to foreign crypto ETFs*.

2. The delegation of digital asset investment management for mutual funds

To ensure that the delegated party is appropriate for managing digital asset investments for mutual funds, the outsourcee must be a licensed Digital Asset Fund Manager (DA Fund Manager).

3. The qualifications for digital asset custodial wallet providers (DA Custodians) and other digital asset business operators to serve as fund supervisors for crypto ETFs

1) DA Custodians and other digital asset business operators will be recognized as qualified financial institutions eligible to act as fund supervisors for mutual funds, as designated by the SEC under Section 121 of the Securities and Exchange Act B.E. 2535 (1992);

2) A DA Custodian or other digital asset business operator acting as a fund supervisor will only be permitted to supervise crypto ETFs. To qualify, the operator must possess adequate and proper qualifications in key areas such as financial standing, personnel, and operational systems, sufficient to perform fund supervisor duties for crypto ETFs. These qualifications must be consistent with the existing regulatory framework governing fund supervisors of mutual funds and must be maintained throughout their role as fund supervisor;

3) A fund supervisor that is a DA Custodian or other digital asset business operator may appoint a sub custodian to safeguard assets in accordance with existing regulations. For the custody of digital assets, such custody must be carried out by a licensed DA Custodian.

In addition, the SEC also seeks public comments on whether existing fund supervisors, such as commercial banks or fund supervisors that are digital asset business operators, may appoint a foreign digital asset custodian as sub-custodian however, in such cases, the foreign custodian must meet the qualifications required for entities permitted to custody digital assets for digital asset business operators under the SEC Board Notification on Rules, Conditions, and Procedures for Operating Digital Asset Businesses, and must also be subject to oversight by a recognized regulatory authority, as prescribed.

Accordingly, the SEC has opened a public hearing on the principles regarding the establishment and regulatory framework for crypto ETFs in Thailand. The consultation paper is available on the SEC website (www.sec.or.th) at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1152 and on the Legal Hub (https://law.go.th/) at https://law.go.th/listeningDetail?survey_id=Njg5N0RHQV9MQVdfRlJPTlRFTkQ= Stakeholders and interested parties are invited to review the consultation paper and submit comments through the SEC website or by email to: [email protected], [email protected], [email protected], [email protected], or [email protected]. The public hearing ends on 11 May 2026.

Note:

* For example, depositary receipts (DRs) referencing foreign crypto ETFs, and cases where securities companies facilitate investments in foreign crypto ETFs by clients who are neither institutional investors nor ultra-high-net-worth investors.