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Thailand Plans Crypto ETF Rules as Institutional Interest Increases
**As the global cryptocurrency market continues to grow in popularity, Thailand's Securities and Exchange Commission (SEC) is taking steps to position itself as a regional hub for institutional investors. The regulator has announced plans to introduce new regulations supporting crypto exchange-traded funds (ETFs), crypto futures trading, and tokenized investment products.
According to Jomkwan Kongsakul, deputy secretary-general of the SEC, formal guidelines for establishing crypto ETFs in Thailand are expected to be issued "early this year." The move aims to make it easier for investors to access cryptocurrency markets by eliminating concerns over hacking and wallet security. "A key advantage of crypto ETFs is ease of access; they eliminate concerns over hacking and wallet security, which has been a major barrier for many investors," Kongsakul said in an interview with the Bangkok Post.
The SEC will also regulate and enable crypto futures trading on the Thailand Futures Exchange (TFEX), while other key initiatives include establishing market makers for liquidity and recognizing digital assets as an official asset class under the Derivatives Act. This is part of Thailand's efforts to become a regional hub for institutional investors, who are increasingly turning their attention to cryptocurrency markets.
Thailand has already seen significant growth in retail trading, with daily volumes on its largest exchange, Bitkub, reaching around $60 million. The country is also home to several major cryptocurrency exchanges, including BitKub and Huobi Thailand, which has seen a surge in popularity among investors.
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Crypto ETFs: A New Era of Investment?
**The introduction of crypto ETFs in Thailand could mark a significant shift in the way investors approach cryptocurrency markets. By providing a regulated and transparent platform for investing in cryptocurrencies, crypto ETFs are expected to make it easier for institutional investors to participate in the market.
"We will encourage issuers of bond tokens to enter the regulatory sandbox," Kongsakul added, highlighting the potential for tokenization to play a key role in the development of Thailand's cryptocurrency ecosystem.
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Tightening Oversight: A Closer Look at Regulatory Developments
**In addition to introducing new regulations supporting crypto ETFs and futures trading, the SEC is also tightening oversight of so-called "financial influencers." Kongsakul emphasized that any recommendation related to securities or investment returns will require proper authorization as either an investment advisor or introducing broker.
The agency is also collaborating with the Bank of Thailand on a tokenization sandbox, which aims to facilitate innovation and experimentation in the use of tokenization for various financial products. The SEC has stated that it will encourage issuers of bond tokens to enter the regulatory sandbox, marking another significant step towards developing Thailand's cryptocurrency ecosystem.
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KuCoin Thailand: A Cautionary Tale?
**In related news, KuCoin Thailand had its operations suspended earlier in January after its capital fell below the minimum requirements for five consecutive days. The company attributed the issue to a shareholder dispute between Singapore's CI group and KuCoin Global that prevented the approval of a planned capital increase.
KuCoin has stated that it is planning to apply for a digital-asset broker license, which would allow it to offer a wider range of financial products in Thailand. The incident serves as a reminder of the importance of regulatory compliance in the cryptocurrency industry and the potential risks associated with non-compliance.