Thailand plans crypto ETF rules as institutional interest increases

The Thai Securities and Exchange Commission (SEC) has announced it is formulating specific regulatory guidelines for the introduction of crypto-backed Exchange-Traded Funds (ETFs). This proactive measure comes in direct response to escalating demand from institutional investors within the Kingdom seeking regulated, safer avenues to access the rapidly growing digital asset sector.

Historically cautious regarding direct crypto exposure for mainstream investment vehicles, the SEC is now focusing on creating a comprehensive framework that minimizes systemic risk while maximizing investor protection. The proposed rules will likely address stringent custody requirements, ensuring that assets are safeguarded by licensed custodians, as well as establishing clear valuation methodologies for underlying digital assets such as Bitcoin and Ethereum.

The significant push for the regulatory change is largely driven by private wealth managers, high-net-worth individuals, and local institutions who currently face limitations in allocating capital to cryptocurrencies due to compliance hurdles. An approved ETF would offer a familiar, regulated financial instrument wrapper, simplifying the administrative burdens for pension funds and investment firms looking for diversified portfolio exposure beyond traditional Thai equities and bonds.

Analysts suggest that the eventual approval of crypto ETFs could significantly boost liquidity and maturity in Thailand’s digital asset market. While a precise timeline for the final regulatory issuance remains pending, the SEC’s move is viewed as a crucial step in positioning Thailand as a key player in the regulated crypto investment space within Southeast Asia.

Source: Thailand plans crypto ETF rules as institutional interest increases