Thailand SEC to expand crypto ETF plans beyond Bitcoin

Thailand’s Securities and Exchange Commission (SEC) is preparing to expand its crypto exchange-traded fund (ETF) offerings beyond Bitcoin, with new funds that could include altcoins or baskets of digital assets expected to launch early next year.

The Thai SEC is collaborating with other government agencies to develop new rules that enable local mutual funds and institutions to launch crypto ETFs within the country. Secretary-General Pornanong Budsaratragoon said the regulator aims to expand the market beyond Bitcoin, which was the initial focus of Thailand’s crypto investment products.

Thailand SEC drafts new rules for wider crypto ETF access

Investors in Thailand have few options when buying cryptocurrency within the law. They can buy the coins directly from online exchanges, which is risky because prices change suddenly, scams are common, and many trading platforms have limited supervision. Other investors use licensed fund managers who invest in overseas crypto ETFs. This means the investments are based in other countries, rather than within Thailand itself.

The situation has left many investors unprotected, so the SEC is now trying to fix it with new rules for safe, regulated products within the Thai market. 

The agency aims to approve ETFs that hold multiple cryptocurrencies beyond Bitcoin, providing investors with access to other popular digital assets, such as Ethereum and Solana. These ETFs may not even hold multiple cryptocurrencies in one product, allowing investors to diversify their risks and gain upside from several coins simultaneously.

SEC secretary-general Pornanong Budsaratragoon said the regulator is also looking at the “possibility to broaden the criteria for crypto, including a basket of cryptocurrencies.” It’s also interested in building “a broader supply of those crypto assets in the ETFs,” she added.

The main stock market has already dropped by about 7.6% this year, leaving many investors dissatisfied with the returns they are receiving from traditional assets. Younger investors are now seeking alternative options because they are more comfortable with technology, online platforms, and digital assets.

Most of them believe crypto offers new ways to grow wealth faster than traditional markets. Officials said they aim to provide them with safe and regulated choices, such as ETFs that include cryptocurrencies, so they don’t turn to unregulated platforms that often carry higher risks.

SEC seeks more oversight as crypto use grows

Binance Holdings Ltd. has already begun expanding in Thailand, as the people appear very interested in crypto and seek additional ways to use and invest in digital currency. Kasikornbank Pcl is also expanding its presence into crypto, as it recognizes that people want services that connect traditional banking with new digital money.

However, this hope also comes with risks because bad actors may take advantage of the people’s excitement.

The SEC seeks additional authority from the government to respond promptly, and the new bill will grant them the power to halt large financial transactions if they identify issues or indications of wrongdoing. This new authority enables the SEC to intervene promptly and prevent damage from spreading, as well as investigate insider trading cases directly.

The bill has passed the first stage of review by the government’s law-writing committee, which shows the seriousness of the matter. The SEC is also working closely with the new administration to expedite the bill’s passage through parliament, aiming to make it law.

Secretary-General Pornanong Budsaratragoon stated that regulators will help restore trust in Thailand’s capital markets when they can effectively punish bad actions promptly.

Thailand aims to instill confidence in both investors and companies to participate in the new digital economy by establishing a digital asset market that grows steadily and safely.