**Thailand Moves Toward Crypto ETFs, Futures, and Tokenized Investment Products**
Thailand's Securities and Exchange Commission (SEC) is making significant strides in its effort to bring crypto investment products into the country's formal financial system. According to SEC deputy secretary-general Jomkwan Kongsakul, the regulator is working on a new set of regulations that will support the development of crypto exchange-traded funds (ETFs), crypto futures trading, and tokenized investment products.
The move is seen as an attempt by Thailand to position itself as a regional hub for institutional investors in the crypto space. Despite a ban on crypto payments, retail trading remains active in the country, with daily trading volumes of around $60 million recorded on Bitkub, the largest exchange in Thailand.
**Crypto ETFs: A Step Closer to Formal Approval**
The SEC is finalizing investment and operational rules for crypto ETFs, which are expected to be issued formally "early this year." Kongsakul explained that the regulator sees crypto ETFs as a product that can reduce barriers for investors who may be hesitant about directly holding digital assets.
"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.
Under the proposed framework, investors will be able to allocate up to 5% of a diverse portfolio to digital assets, with the SEC treating crypto as "another asset class." This move is expected to attract more institutional interest in the crypto market, particularly through regulated products that sit within existing legal frameworks.
**Regulating Crypto Futures Trading**
The SEC is also working on rules to enable crypto futures trading on the Thailand Futures Exchange (TFEX). This will allow investors to gain exposure to crypto price movements through regulated derivatives markets. Kongsakul said other initiatives under consideration include establishing market makers to support trading liquidity and recognizing digital assets as an official asset class under the Derivatives Act.
**Tokenization: A Collaboration with the Central Bank**
The SEC is also expanding its approach beyond ETFs and futures through tokenization initiatives. Kongsakul said the agency is working with the Bank of Thailand on a tokenisation sandbox, which could provide a controlled setting for testing tokenized instruments.
"We will encourage issuers of bond tokens to enter the regulatory sandbox," Kongsakul added.
This collaboration aims to develop regulated pathways for blockchain-based issuance without opening the door to unmonitored retail distribution. By pushing tokenized bond products into a supervised environment, Thailand could establish itself as a leader in the development of regulated tokenization frameworks.
**Tighter Standards for Online Promotion and Investment Advice**
While expanding products and market access, the SEC is also tightening standards around promotion and investment-related content online. Kongsakul said the regulator is stepping up oversight of "financial influencers," signalling that marketing and informal advice will face more restrictions.
"Any recommendation related to securities or investment returns will require proper authorisation as either an investment advisor or introducing broker," Kongsakul said.
The rules aim to curb unregulated investment promotion, particularly at a time when digital assets continue to be widely discussed across social media.