Thailand’s financial watchdog is gearing up for a significant shift in how digital assets are treated, as it moves closer to rolling out clear rules for crypto-focused investment products.
The Securities and Exchange Commission (SEC) says new regulations are on the way to support crypto exchange-traded funds, futures trading, and tokenized investments — all part of a broader effort to modernize the country’s capital markets.
Crypto ETFs Move Closer to Reality
According to SEC deputy secretary-general Jomkwan Kongsakul, formal guidelines that would allow crypto ETFs to launch in Thailand are expected early this year.
The proposal has already received approval in principle from the SEC’s board, with officials now fine-tuning the investment and operational details.
Kongsakul highlighted why ETFs are seen as a game changer, especially for cautious investors.
By removing the need to manage private keys or digital wallets, crypto ETFs lower the risk of hacks and technical mishaps — two issues that have long kept traditional investors on the sidelines.
Futures Trading and Stronger Market Infrastructure
Beyond ETFs, the SEC is also laying the groundwork for crypto futures trading on the Thailand Futures Exchange (TFEX).
Regulators plan to back this with proper market makers to ensure liquidity and smoother price discovery.
Another notable shift is legal recognition.
Digital assets are set to be officially classified as an asset class under the Derivatives Act, placing them alongside more traditional financial instruments and giving institutions a clearer legal framework to work within.
Positioning Thailand as a Regional Crypto Hub
Even with a ban on crypto payments, digital asset trading remains popular among Thai investors.
The country’s largest exchange, Bitkub, reportedly handles daily trading volumes of about $60 million, underscoring strong local demand.
By building regulated products for institutional players, Thailand hopes to strengthen its appeal as a regional center for crypto investment, while keeping tighter control over how these markets operate.
How Crypto Fits Into Investor Portfolios
Under the SEC’s proposed approach, crypto would be treated much like any other asset class.
Investors would be allowed to allocate up to 5% of a diversified portfolio to digital assets, a move designed to balance opportunity with risk.
This framework aims to give investors exposure without encouraging excessive speculation — a recurring concern among regulators worldwide.
Crackdown on Financial Influencers
Alongside market expansion, the SEC is sharpening its focus on enforcement.
Financial influencers are now firmly in the spotlight, with regulators warning that anyone offering investment recommendations or discussing potential returns must be properly licensed.
That means authorization as an investment advisor or introducing broker will be required, a step intended to curb misleading promotions and protect retail investors from unverified claims online.
Tokenization Sandbox Takes Shape
The SEC is also working closely with the Bank of Thailand to develop a regulatory sandbox for tokenized assets.
Issuers of bond tokens will be encouraged to test their products within this controlled environment, allowing innovation to move forward without sacrificing oversight.
Officials say the sandbox approach will help regulators understand risks early while giving legitimate projects room to grow.
KuCoin Thailand Faces Temporary Setback
While the regulatory picture is brightening overall, not every exchange is on steady footing.
Earlier this month, the SEC suspended KuCoin Thailand after its capital levels dropped below minimum requirements for five consecutive days.
The company blamed the issue on a shareholder dispute between Singapore-based CI Group and KuCoin Global, which delayed approval for a planned capital injection.
KuCoin insists the problem was procedural rather than a sign of financial distress.
What KuCoin Plans to Do Next
KuCoin entered the Thai market in June 2025 and says it is working to resolve the suspension.
The exchange also plans for its local entity to apply for a digital-asset broker license, which would open the door to offering a broader range of financial products in the country.
What Comes Next for Thailand’s Crypto Market?
With ETF rules nearing completion, futures trading on the horizon, and tighter supervision of influencers, Thailand appears to be striking a careful balance between innovation and control.
The coming months will likely reveal whether these moves are enough to cement the country’s ambitions as a serious crypto destination — especially for institutional investors watching from the sidelines.
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