Mitihoon – SEC issues regulations for crypto ETFs in Thailand to broaden investment opportunities under appropriate regulatory framework
Bangkok, 8 October 2026 – The Securities and Exchange Commission (SEC) has issued notifications governing the establishment and regulatory framework for crypto exchange-traded funds (crypto ETFs) in Thailand, including the delegation of digital asset investment management by asset management companies (AMCs) and the eligibility of digital asset custodians (DA custodians) and other qualified digital asset business operators to act as mutual fund supervisors for crypto ETFs. The proposed regulations aim to broaden investment opportunities for investors, enhance the capabilities of business operators, and promote the crypto ETF ecosystem under an appropriate investor protection framework. The notifications will take effect on 16 October 2026.
The SEC previously proposed regulations for the establishment and regulatory framework for crypto ETFs in Thailand, which are ETFs that invest in cryptocurrencies (crypto) and are traded on the stock exchange. The proposal also included the regulations on the delegation of digital asset investment management by AMCs and the eligibility of DA custodians and other qualified digital asset business operators to act as mutual fund supervisors for crypto ETFs. These proposed regulations aimed to broaden investment opportunities for investors, enhance the capabilities of business operators, promote product diversity in Thailand’s capital market, and further strengthen the readiness of the crypto ETF ecosystem in Thailand, under a regulatory framework that prioritizes investor protection. The SEC conducted public hearings on the proposed principles during April–May 2026 and on the draft notifications during August–September 2026, in which most respondents supported the proposed principles and draft notifications.
The SEC has therefore issued 11 related notifications*, which will take effect on 16 October 2026. The key provisions are as follows:
- Regulatory framework for the establishment of crypto ETFs: Crypto ETFs must comply with the regulatory framework generally applicable to ETFs, including the requirements governing investment in digital assets by MFs. The SEC has also prescribed additional investor protection measures, as follows:
(1) AMC readiness: An AMC seeking to establish a crypto ETF must demonstrate adequate organizational readiness, including personnel, operational systems, and arrangements with relevant service providers, to ensure that the fund can operate securely, efficiently, and in an orderly manner.
(2) Investment policy and structure: A crypto ETF must be established and managed as a passive investment vehicle seeking to track the price of the crypto asset in which the fund invests. The fund must maintain average net exposure to a single crypto asset of at least 80 percent of net asset value (NAV) over each accounting year.
The SEC will prescribe the types of crypto assets in which the fund may invest, taking into account liquidity, broad market acceptance, network security, and investor protection. During the initial stage, eligible crypto assets will be Bitcoin and Ethereum.
(3) Safekeeping of fund assets: Crypto ETFs must be safeguarded only by DA custodians regulated by the SEC.
(4) Trading venue and investor protection: Crypto ETFs will be listed and traded exclusively on the Stock Exchange of Thailand (SET). Additional investor protection measures will apply, including investor education on the characteristics and risks of the product and a mechanism requiring investors to acknowledge and confirm their understanding of the relevant risks before trading crypto ETFs.
Securities companies providing trading services for crypto ETFs on the SET must also emphasize appropriate asset allocation, avoiding concentrated investment in digital assets, and making investment decisions consistent with their own risk tolerance.
In addition, securities companies will not be permitted to provide margin loans for the purchase of crypto ETFs, which is in line with the regulatory approach to crypto trading through digital asset business operators, under which lending for the purchase of crypto is not permitted.
(5) Disclosure and other relevant requirements: AMCs must disclose sufficient information to enable investors to understand the characteristics, structure, investment mechanisms, relevant service providers, and specific risks of crypto ETFs.
- Regulations on the outsourcing of digital asset investment management by AMCs: An AMC may outsource digital asset investment management only to a licensed digital asset fund manager (DA fund manager) to ensure that the outsourced function is performed by a fit and proper entity and subject to regulatory oversight appropriate to the characteristics of the assets.
- Regulations on the eligibility of DA custodians and other qualified digital asset business operators to act as mutual fund supervisors for crypto ETFs
(1) DA custodians and other digital asset business operators with adequate readiness in terms of personnel and operational systems may apply for registration as mutual fund supervisors for crypto ETFs under Section 121 of the Securities and Exchange Act B.E. 2535 (1992) (SEA).
(2) A DA custodian or other digital asset business operator acting as mutual fund supervisor may supervise only crypto ETFs. To qualify, the operator must demonstrate adequate readiness in key areas, including financial standing, personnel, and operational systems, to perform the duties of a mutual fund supervisor for crypto ETFs. These requirements will be consistent with the existing regulatory framework for mutual fund supervisors and must be maintained throughout the period in which the operator performs such duties.
(3) A mutual fund supervisor that is a DA custodian or other digital asset business operator may appoint a sub-custodian to safeguard fund assets in accordance with existing regulations. However, the custody of digital assets, whether undertaken directly by the mutual fund supervisor or delegated to a sub-custodian, must be performed by a licensed DA custodian.
In the future, the SEC may permit the use of a foreign DA custodian that meets the prescribed qualifications if such use is considered necessary and appropriate in light of prevailing circumstances.
Concurrently, the SEC has amended the regulations to allow mutual funds and private funds to invest in Thai crypto ETFs, whereas they were previously permitted to invest only in foreign crypto ETFs. Such investments will remain subject to the existing investment limits.
Furthermore, 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, such as 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.
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