Thailand SEC readies new regulations to back crypto ETFs

Thailand’s financial regulator is preparing an overhaul of digital asset rules to channel investor demand into regulated markets, as its central bank battles headwinds that threaten to slump the country’s economy. 

The Thai SEC is drafting a new set of regulations, scheduled for release early this year, to support digital asset investments. The planned framework is meant to cover crypto exchange-traded funds, crypto futures trading, and the use of tokenized investment instruments, local news outlet Bangkok Post reported on Thursday.

Jomkwan Kongsakul, deputy secretary-general of the SEC, said the regulator intends to publish formal guidelines to support the establishment of crypto ETFs in Thailand within the coming months. 

Thailand SEC pushes for crypto ETFs and futures trading

Following the Thai SEC’s approval of crypto ETFs in principle last year, Ms Jomkwan confirmed that it is now finalizing investment and operational rules to govern how the products are structured and traded.

The proposed framework will see asset management companies and licensed crypto exchanges cooperate to jointly develop ETFs that could eventually be listed and traded on the Stock Exchange of Thailand.

Alongside ETFs, the SEC is working to formally recognize digital assets as an underlying asset class under the Derivatives Act, which would allow crypto futures to be traded on the Thailand Futures Exchange under the Futures Trading Act. 

Ms Jomkwan admitted that legal and regulatory hurdles have slowed efforts to implement a crypto framework in the past. “This year, the SEC will encourage issuers of bond tokens to enter the regulatory sandbox,” she said. The sandbox approach would allow issuers to test products under regulatory supervision before full approval.

Crypto investors with higher risk tolerance could allocate around 4 to 5 percent of their portfolios to digital assets, according to the SEC’s guidance. However, the SEC wants to add other varieties of digital tokens used for investment, away from ETFs and popular tokens like bitcoin and ether.

Moreover, it plans to tighten oversight of financial influencers, noting a clear distinction between sharing factual information and providing regulated investment advice.

In addition, Thailand’s government is planning to launch its first green token as part of this expansion, which it said would support sustainable, environmental, social, and governance finance.

Thailand’s economy could slow in 2026, central bank says

The crypto-friendly regulatory charge is against the backdrop of a flailing economy. The central bank warned last week that Thailand’s economic competitiveness is getting weak. US tariffs, high household debt levels, and a strong currency are among the bumps that could thwart economic growth, according to the Bank of Thailand.

According to a Reuters report, the baht gained more than 10% against the greenback last year, a move expected to weigh on export shipments in 2026. A standing 19% US tariff that took effect in August could also impact exports this year.

A border dispute with Cambodia escalated into nearly three weeks of heavy fighting last month. Thailand has had three prime ministers in as many years and is heading into a snap general election scheduled for February 8.

“This year there is a lot of uncertainty,” Bank of Thailand deputy governor Piti Disyatat told reporters. “Policy room is low, ‌but that doesn’t mean there is none. If we think it ‌is necessary then it will be used.”

The central bank said GDP growth in the second half of last year likely reached 1.3% year-on-year, with exports climbing to 9.1% over the period. However, the Thai Trade Policy and Strategy Office predicts exports to turn flat in 2026 as the full impact of US tariffs is felt.

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