Thailand SEC Drafts Rules for Bitcoin & Ether ETFs, Custodians

Thailand’s Securities and Exchange Commission (SEC) is moving closer to a formal regulatory pathway for spot Bitcoin and Ether exchange-traded funds (ETFs), shifting from high-level concepts to draft rules and inviting public feedback. In parallel, the regulator is revising how it approaches the use of foreign digital-asset custodians for funds that invest in crypto.

According to the Thai SEC, the agency is seeking comments on two separate consultation papers. One outlines draft regulations for Thai-listed spot crypto ETFs, while the other sets out the qualification principles for foreign digital-asset custodians used by mutual and private funds investing in digital assets. The consultation period runs until Sept. 20.

Key takeaways

• Draft Thai ETF rules would initially limit eligible underlying assets to Bitcoin and Ether only.
• Spot Bitcoin and Ether ETFs would trade exclusively on the Stock Exchange of Thailand (SET).
• ETFs would need to maintain an average net exposure of at least 80% of net asset value to the tracked crypto asset over each accounting year.
• The SEC’s revised custody approach keeps onshore custodians as the default in early stages, while allowing qualified foreign custodians only when the SEC deems it necessary and appropriate.