Thailand’s Securities and Exchange Commission (SEC) is advancing regulatory frameworks for spot Bitcoin and Ether exchange-traded funds (ETFs) while revising guidelines for foreign digital asset custodians. The regulator has issued two consultation papers, seeking public input on draft rules for locally listed crypto ETFs and principles for foreign custodians ahead of a Sept. 20 deadline.
The proposed framework would allow asset managers to launch passive ETF’s tracking Bitcoin and Ether, which would trade exclusively on the Stock Exchange of Thailand (SET). These funds must maintain an average net exposure of at least 80% to the underlying asset annually, according to the draft regulations.
Initially, the Thai SEC has restricted the market to ETFs directly tied to Bitcoin and Ether, excluding products linked to foreign ETFs. The consultation also outlines conditions under which qualified foreign custodians may be permitted, alongside continued emphasis on onshore custodians.
The regulator’s approach signals a cautious but evolving stance on crypto assets, balancing innovation with safeguards for investors. Comments on the proposals remain open until Sept. 20.
Written by Steven Cook
Regulation Desk
