Thailand’s Securities and Exchange Commission (SEC) is preparing new rules to allow local spot crypto-based exchange-traded funds (ETFs) and expand the potential lineup beyond Bitcoin (BTC). Thai SEC To Widen ETF Lineup With New Rules On Wednesday, Thailand’s SEC Secretary-General, Pornanong Budsaratragoon, revealed that the regulatory agency is working to expand its crypto ETF plans beyond Bitcoin and include other digital assets in the coming months. In an interview with Bloomberg, the regulator stated that the SEC and other agencies are drafting new rules to allow local mutual funds and institutions to offer digital asset-based ETFs for the first time, with the rollout expected for early 2026. It’s worth noting that Thai investors can currently gain exposure to these products by investing in funds managed by licensed asset management companies that invest in overseas crypto ETFs. In June 2024, Thailand’s SEC officially approved One Asset Management to launch a fund-to-fund Bitcoin ETF, which allows institutional investors to gain exposure to BTC-based investment products listed overseas. In January, the Secretary-General unveiled that the regulatory agency was evaluating the listing of local spot Bitcoin ETFs to strengthen the country’s digital assets market, affirming the regulator’s intention to permit both individuals and institutions to invest in locally listed Bitcoin ETFs. “We have to adapt and ensure that our investors have more options in crypto assets with proper protection,” she explained at the time. The new rules would go beyond the current limitations and expand the potential ETF lineup to a broader basket of crypto assets. “Our possibility now is to broaden the criteria for the crypto such as a basket of cryptocurrencies,” Pornanong told Bloomberg. “We want to have broader supply of those crypto assets in the ETFs.” Thailand Continues Crypto Hub Efforts The Secretary-General also highlighted investors’ desire to diversify their portfolios and adopt digital assets as part of their investment strategies, especially among young people, noting that the agency’s main task is to “facilitate” that demand under a legal framework. Thai regulators have been accelerating their efforts to become a regional crypto hub, the report stated, developing multiple policies aimed at making tokenized products mainstream investment choices. Earlier this year, the SEC, alongside the Bank of Thailand (BOT), introduced a crypto sandbox in tourist areas to enhance the country’s appeal as a tech-savvy destination, promote innovation, and the use of digital assets to boost the economy and tourism industry. As reported by Bitcoinist, the TouristDigiPay sandbox, launched in August, aims to facilitate the conversion of digital assets into Thai Baht for the spending purposes of foreign visitors, allowing Bitcoin and digital assets as payment methods in tourist areas to drive adoption. Moreover, the regulatory agency has also proposed rule changes to provide crypto exchanges with flexibility while enhancing investor protection and oversight, allowing digital asset platforms to list their utility tokens or tokens issued by affiliated entities. Meanwhile, Thailand’s Deputy Finance Minister, Julapun Amornvivat, shared a plan to drop capital gains tax on digital assets for five years. The minister announced that, starting January 1, 2025, until December 31, 2029, investors who sell their assets through licensed crypto service providers won’t have to pay taxes on the profits.
