The Thai Securities and Exchange Commission (SEC) is set to introduce new regulations aimed at integrating cryptocurrency investment products into the country’s formal financial system. As Thailand positions itself as a regional hub for institutional crypto investment, this initiative includes the potential launch of cryptocurrency exchange-traded funds (ETFs) and futures trading.
Progress Towards Cryptocurrency ETFs
Jomkwan Kongsakul, the SEC’s Deputy Secretary-General, announced that guidelines for crypto ETFs could be published as early as this year. The SEC is currently finalizing investment and operational rules, having already approved the concept of crypto ETFs. Kongsakul emphasized that these products could help lower barriers for investors hesitant about directly holding digital assets.
“One significant advantage of crypto ETFs is their accessibility,” Kongsakul noted, adding that these funds mitigate concerns about hacking and wallet security, which often deter potential investors. Under the proposed framework, cryptocurrency will be classified as “another asset class,” allowing investors to allocate up to 5% of a diversified portfolio to digital assets.
Futures Trading on Thailand Futures Exchange (TFEX)
In addition to the ETF guidelines, the SEC is preparing to regulate futures trading on the Thailand Futures Exchange (TFEX). This would enable investors to engage with cryptocurrency price movements through regulated derivatives markets.
Furthermore, Kongsakul indicated that additional initiatives may include the establishment of market makers to enhance trading liquidity and recognize digital assets as an official asset class under the derivatives law. This move seeks to attract increased institutional interest in Thailand’s crypto markets through regulated products.
Tokenization and Collaboration with the Central Bank
The SEC is also exploring tokenization initiatives beyond ETFs and futures. Kongsakul revealed that the agency is collaborating with the Bank of Thailand on a tokenization sandbox, providing a controlled environment to test tokenized instruments.
“We will encourage bond token issuers to operate within the regulatory framework,” Kongsakul added, suggesting that this could lead to regulated pathways for blockchain-based issuance without exposing retail investors to unregulated distributions.
Stricter Oversight for Financial Influencers
While expanding product offerings and market access, the SEC is simultaneously tightening regulations around promotional and investment-related online content. Kongsakul stated that the regulator will enhance oversight of “financial influencers,” signifying that informal marketing and advice will face increased restrictions.
“Any recommendation regarding securities or investment returns will require appropriate authorization as an investment advisor or introductory broker,” he remarked, a move aimed at curbing the promotion of unregulated investments amidst the ongoing discussion of digital assets on social media.
KuCoin Thailand Works to Resolve SEC Suspension
This regulatory change comes as the SEC pursues enforcement actions in Thailand’s local trading market. Earlier this month, the SEC suspended operations of KuCoin Thailand after the company’s capital fell below minimum requirements for five consecutive days, according to local media.
KuCoin Thailand attributed the violation to a shareholder dispute between the Singapore-based CI Group and KuCoin Global, which hindered the approval of a planned capital increase. The company clarified that the issue did not stem from genuine financial liquidity problems.
Since entering the Thai market in June 2025, KuCoin plans to apply for a digital asset brokerage license, enabling a broader range of financial products. Despite a ban on cryptocurrency payments, Thailand’s crypto market remains active, with Bitkub, the largest exchange in the country, reporting daily trading volumes around $60 million.
Regulators appear to prioritize controlled access to investments through structured products like ETFs, futures, and tokenized instruments, even as retail trading remains robust.
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