Thailand Opens the Door to Crypto ETFs, but Shuts the Back Door on Foreign Ones

Thailand Opens Crypto Doors, Shuts Foreign ETF Gates

Launch and Restrictions

Thailand's rules for Bitcoin and Ethereum ETFs on its stock exchange take effect on October 16. The same rulebook blocks brokers from steering ordinary investors into foreign crypto ETFs. The Securities and Exchange Commission (SEC) issued 11 notifications on October 8 after two rounds of public hearings. Until now, Thai mutual funds could get crypto ETF exposure only through products listed abroad.

Market Focus

The regulator will focus on local asset managers and custodians building the market. Only passive, SEC-regulated funds with strict risk checks and local custody will be accepted. Local mutual funds and private funds can now buy local crypto ETFs, subject to existing investment limits.

Investment Rules

The funds must be passive. Each must keep average net exposure to a single crypto asset at no less than 80% of net asset value over every accounting year. Coins must sit with SEC-regulated digital asset custodians. However, the regulator said it may later accept qualified foreign custodians where appropriate. Investors must also complete risk education and confirm they understand the product before trading.

Broader Pattern

The approach fits a broader pattern of tighter Thai oversight, including a proposed audit of USDT transactions. For global ETF issuers, the rules suggest Thailand's market will be built by local asset managers and custodians first.