Thailand’s SEC Pushes for Crypto ETFs and Futures with New Regulatory Guidelines

TLDR

• Thailand’s SEC will introduce new rules for crypto ETFs, futures trading, and tokenized investment products this year.
• The SEC plans to support the launch of Thailand’s first green token linked to ESG investment goals.
• Crypto ETFs will allow Thai investors to access digital assets without managing wallets or private keys.
• The SEC is collaborating with asset management firms and digital exchanges to develop crypto ETFs for the Stock Exchange of Thailand.
• Thailand’s SEC aims to establish digital assets as an asset class under the Derivatives Act, enabling crypto futures trading.

Thailand’s Securities and Exchange Commission (SEC) is preparing new regulations to support the growth of digital assets. These include rules for crypto exchange-traded funds (ETFs), futures trading, and tokenized investment products.

SEC to Support Crypto ETFs and Futures Trading

According to a report by Bangkok post, the SEC plans to release formal guidelines for crypto ETFs in Thailand early this year. These guidelines will also support crypto futures trading on the Thailand Futures Exchange (TFEX).

Jomkwan Kongsakul, deputy secretary-general of the SEC, emphasized the importance of these moves for institutional and retail investors. She added that the SEC aims to expand the use of digital tokens, including bond tokens and tokenized fund units.

The SEC also intends to introduce Thailand’s first green token to promote sustainable finance. This token will be linked to environmental, social, and governance (ESG) investment goals. Jomkwan noted that despite legal challenges in the past, the SEC is focused on encouraging bond token issuers to enter the regulatory sandbox.

Crypto ETFs to Attract Thai Investors

Crypto ETFs are expected to become an attractive option for Thai investors. They provide an opportunity to gain exposure to digital assets without the need for managing digital wallets or private keys. This significantly reduces operational and cybersecurity risks.

The SEC has already approved crypto ETFs in principle and is finalizing the operational rules for these products. Ms. Jomkwan stated that the SEC is working closely with asset management firms and licensed digital asset exchanges.

The goal is to jointly develop crypto ETFs that will be listed and traded on the Stock Exchange of Thailand (SET). To ensure sufficient liquidity, the SEC is considering the introduction of market makers for crypto ETFs.

Push for Crypto Futures and Better Risk Management

The SEC also plans to recognize digital assets as an underlying asset class under Thailand’s Derivatives Act. This would pave the way for crypto futures trading on TFEX, providing investors with better hedging tools.

Jomkwan explained that the move would offer more sophisticated risk management options for investors. The SEC sees crypto as a legitimate asset class rather than a speculative investment.

Alongside product innovation, the SEC will enforce stricter supervision of financial influencers. They plan to distinguish between factual information sharing and licensed investment advice. This aims to protect investors and ensure proper market regulation.