Thailand SEC Seeks Public Comments on Draft Rules for Bitcoin and Ethereum ETFs

According to Cointelegraph, the Securities and Exchange Commission (SEC) of Thailand has advanced its regulatory framework for locally listed spot Bitcoin and Ethereum ETFs from a principle-based proposal to a draft rules stage, and is now seeking public comments. The regulator issued two consultation papers on Monday, one containing draft rules for Thai crypto ETFs and the other proposing qualification principles for foreign digital asset custodians.

In the initial phase, asset management companies may establish passive ETFs tracking Bitcoin or Ethereum, which are the only eligible crypto assets. Under the proposed rules, Bitcoin and Ethereum ETFs will be traded exclusively on the Stock Exchange of Thailand (SET), with each ETF tracking a single crypto asset and maintaining at least 80% net asset exposure to that asset within each fiscal year. Mutual funds and private funds may also invest in Thai domestic crypto ETFs, as well as foreign crypto ETFs they are already permitted to invest in, subject to existing investment limits. However, in the initial phase, regulators will not allow alternative products linked to foreign crypto ETFs, including depositary receipts tracking them.

Regarding custody, the revised plan still designates domestic digital asset custodians as primary service providers in the initial phase, with the Thai SEC permitted to allow qualified foreign digital asset custodians when necessary. Foreign custodians must be supervised by regulators with legal authority and meet regulatory and investor asset protection standards deemed sufficient by the Thai SEC. The public comment period for both consultation papers ends on September 20.