The SEC previously proposed principles for the establishment and regulation of crypto ETFs in Thailand to broaden investment opportunities for investors, enhance the capabilities of business operators, and promote product diversity in Thailand’s capital market. Following a public hearing held during April–May 2026, in which most respondents supported the proposed framework and provided useful comments regarding the use of DA custodian services, the SEC has reviewed and revised the proposed custody framework for crypto ETFs to provide greater flexibility. Under the revised approach, crypto ETFs will continue to be primarily required to use onshore DA custodians, while the SEC may permit the use of qualified foreign DA custodians when necessary and appropriate in light of prevailing circumstances.

The SEC is therefore seeking public comments on the draft regulations governing the establishment and regulatory framework for crypto ETFs in Thailand, and on the proposed principles for revising the qualification requirements for foreign DA custodians serving mutual funds and private funds investing in digital assets. The proposals cover three key areas, as follows:

1. Regulatory framework for the establishment of crypto ETFs in Thailand

A crypto ETF must be established and managed by an asset management company (AMC) and comply with the regulatory framework generally applicable to ETFs, the requirements governing investment in digital assets by MFs, and additional investor protection measures, as follows:

        1) AMC readiness: An AMC seeking to establish a crypto ETF must demonstrate adequate organizational readiness, including personnel, operational systems, and arrangements with relevant service providers, to ensure that the fund can operate securely, efficiently, and in an orderly manner.

        2) Investment policy and structure: A crypto ETF must be established and managed as a passive investment vehicle seeking to track the price of the crypto asset in which the fund invests. The fund must maintain average net exposure to a single crypto asset of at least 80 percent of net asset value (NAV) over each accounting year. The SEC will prescribe the types of crypto assets in which the fund may invest, taking into account liquidity, broad market acceptance, network security, and investor protection. During the initial stage, eligible crypto assets will be Bitcoin and Ethereum.

        3) Safekeeping of fund assets: Crypto ETFs must be primarily safeguarded by DA custodians regulated by the SEC.

        4) Trading venue and investor protection: Crypto ETFs must be listed and traded exclusively on the Stock Exchange of Thailand (SET). Additional investor protection measures will apply, including investor education on the characteristics and risks of the product and a requirement for investors to acknowledge and confirm their understanding of the relevant risks before trading crypto ETFs. Business operators must also emphasize appropriate asset allocation, the need to avoid excessive concentration in digital assets, and the importance of making investment decisions consistent with each investor’s risk tolerance and financial capacity.

        5) Disclosure and other relevant requirements: AMCs must provide sufficient information to enable investors to understand the characteristics, structure, investment mechanisms, relevant service providers, and specific risks of crypto ETFs.

        In addition, the SEC will amend the applicable regulations to allow MFs and PFs to invest in Thai-domiciled crypto ETFs, in addition to foreign crypto ETFs as currently permitted, while such investments will remain subject to the existing investment limits. To encourage the establishment of crypto ETFs in Thailand and strengthen the capabilities of Thai business operators, the SEC will not, during the initial phase, permit the issuance, establishment, or offering of alternative products linked to foreign crypto ETFs*.

2. Delegation of digital asset investment management by AMCs

An AMC may delegate digital asset investment management only to a licensed digital asset fund manager (DA fund manager) to ensure that the delegated function is performed by an entity with relevant expertise and subject to regulatory oversight appropriate to the characteristics of the assets.

3. Eligibility of DA custodians and other qualified digital asset business operators to act as mutual fund supervisors for crypto ETFs

        1) DA custodians and other digital asset business operators with adequate readiness in terms of personnel and operational systems may apply for registration as mutual fund supervisors for crypto ETFs under Section 121 of the Securities and Exchange Act B.E. 2535 (1992) (SEA).

        2) A DA custodian or other digital asset business operator acting as mutual fund supervisor may supervise only crypto ETFs. To qualify, the operator must demonstrate adequate readiness in key areas, including financial standing, personnel, and operational systems, to perform the duties of a mutual fund supervisor for crypto ETFs. These requirements will be consistent with the existing regulatory framework for mutual fund supervisors and must be maintained throughout the period in which the operator performs such duties.

        3) A mutual fund supervisor that is a DA custodian or other digital asset business operator may appoint a sub-custodian to safeguard fund assets in accordance with existing regulations. However, the custody of digital assets, whether undertaken directly by the mutual fund supervisor or delegated to a sub-custodian, must be performed by a licensed DA custodian.

In the initial phase, the custodian of digital assets must primarily be an onshore DA custodian. In the future, the SEC may permit the use of a foreign DA custodian that meets the prescribed qualifications if such use is considered necessary and appropriate in light of prevailing circumstances. The foreign service provider must be subject to supervision by a regulatory authority with legal powers and operate under regulatory and investor asset protection standards considered adequate by the SEC.

The SEC has published two consultation papers, as follows: 
(1) Draft Notification related to the establishment and regulatory framework for crypto ETFs in Thailand, available on the SEC website at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1199 and on the Legal Hub at https://law.go.th/listeningDetail?survey_id=ODAzM0RHQV9MQVdfRlJPTlRFTkQ=; and
(2) Proposed principles for revising the qualification requirements for foreign DA custodians engaged by MFs and PFs investing in digital assets, available on the SEC website at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1200 and on the Legal Hub at https://law.go.th/listeningDetail?survey_id=ODAzNERHQV9MQVdfRlJPTlRFTkQ=.
Stakeholders and interested parties are invited to submit comments through the websites or by email to chavisa@sec.or.th, thanunya@sec.or.th, pattarav@sec.or.th, panumart@sec.or.th, or thapanee@sec.or.th. The public hearing ends on 20 September 2026.

Note: * Examples include depositary receipts (DRs) referencing foreign crypto ETFs and arrangements through which securities companies facilitate investments in foreign crypto ETFs for customers who are neither institutional investors nor ultra-high-net-worth investors.