Another step, not the finish line. After unveiling its three-year strategic plan in January, the Thai stock market regulator is moving to the next phase. The local SEC opened two public consultations on August 24: one on the specific rules for future Bitcoin and Ether ETFs listed locally, and the other on foreign custodians of digital assets authorized to operate in the country. Bangkok is methodically advancing, brick by brick, towards its ambition of becoming a regional crypto hub. Key points of this article: * The Thai SEC has opened two public consultations on the rules for Bitcoin and Ether ETFs and on foreign custodians of digital assets, ending on September 20. * A minimum exposure floor of 80% for future Thai ETFs has been set, with passive management limited to the Stock Exchange of Thailand, and ongoing debate about the custody of digital assets. The published text sets specific safeguards, far from the vague announcements of January. Indeed, each fund must maintain an average net exposure of at least 80% of its net assets to the underlying cryptocurrency over the accounting year, according to the announcement from the Thai SEC published on August 24. These passively managed ETFs will only be able to trade on the Stock Exchange of Thailand (SET), and only Bitcoin and Ether are eligible for this first phase, due to the lack of other assets deemed sufficiently liquid by the regulator. Management companies will also need to prove that they have the personnel and systems suitable for this type of product before any effective launch. The text from August 24 extends an initial draft submitted for comments as early as April, when the regulator laid out the main principles of management and custody. The majority of feedback already supported the project at that time, with only the issue of custodians raising enough reservations to prompt the SEC to revise its draft. The issue of custodians, a point of friction since April The topic that caused the most concern during the first consultation in April was the custody of assets, as is often the case. The revised version maintains local custodians as the default option while allowing the SEC some leeway to authorize qualified foreign providers "if circumstances warrant." A compromise that protects the local industry of digital asset custody without completely closing the door to international expertise. Mutual and private funds already authorized to invest in foreign crypto ETFs will be able, under the same regulatory caps, to turn to these new Thai vehicles once the framework is finalized. Representative certificates backed by foreign crypto ETFs will remain prohibited during this first phase: Bangkok wants to maintain control over locally domiciled products before considering further openings. Consultation open until September 20, verdict expected afterward The comment window remains open for now; nothing is set in stone yet. The public and industry players have until September 20 to respond to the two texts before the SEC continues the regulatory process. This project is progressing alongside another: since February, cryptocurrencies have been recognized as valid underlying assets for regulated futures contracts in Thailand, a distinct but complementary framework that also aims to bridge traditional finance with the local crypto market. In April, the SEC also proposed simplifying access to crypto derivatives for already licensed companies, without requiring them to create a separate legal entity for each new product. Bangkok had already laid a first stone in June 2024, with a Bitcoin ETF reserved for qualified investors managed by One Asset Management. This time, the ambition scales up: direct access listed on the SET, potentially open to a much broader base of investors than the small circle of wealthy individuals targeted by the first product.