Thailand advances regulated crypto ETFs and futures; allows up to 5% portfolio allocation
Thailand’s Securities and Exchange Commission (SEC) is finalising a regulatory framework to expand regulated access to digital assets, with formal rules expected early this year. Key measures include authorising regulated crypto exchange-traded funds (crypto ETFs), recognising digital assets under the Derivatives Act to permit crypto futures on the Thailand Futures Exchange (TFEX), and publishing operational standards for custody, listing and daily operations. The SEC plans to allow investors to allocate roughly 4–5% of portfolios to higher‑risk digital assets and will introduce market makers on TFEX to improve liquidity. Regulators will also tighten oversight of financial influencers — anyone recommending specific securities or promising returns must register as an investment advisor or introducing broker. Separately, the SEC and the Bank of Thailand will launch a tokenisation sandbox to test bond token issuance and broaden token categories beyond established coins such as BTC and ETH. The moves aim to give institutional and retail investors safer, regulated access, boost market liquidity, and position Thailand as a Southeast Asian crypto hub. Domestic exchange Bitkub remains the largest local venue, with daily volumes often near $60m; however, a ban on using digital coins for payments remains in force.
Bullish
The SEC’s plans to authorise regulated crypto ETFs and formally recognise crypto futures are likely bullish for the quoted cryptocurrencies mentioned and for Thailand’s domestic crypto market. Short-term impact: approval news and clearer operational rules typically boost demand, increase trading volumes, and attract institutional flows — supporting price upside for BTC and ETH and increasing liquidity on local venues like Bitkub. Introduction of market makers on TFEX should reduce spreads and improve execution, encouraging more active trading. Tightened oversight of financial influencers and custody/operational standards may remove retail uncertainty and reduce tail‑risk, which supports sustainable inflows rather than speculative spikes. Long-term impact: regulated ETF access and tokenisation sandboxes can broaden institutional participation, deepen onshore liquidity, and enable product innovation (e.g., bond tokens), which supports a structurally stronger market. Constraints: the continued ban on crypto payments and overall macro headwinds (strong baht, geopolitical/ trade risks) temper upside; benefits will accrue gradually as operational rules and listings roll out. Overall, the directional effect is positive for crypto asset demand and liquidity in Thailand, hence a bullish assessment.