Residents of Thailand may soon have access to crypto exchange-traded funds as the Securities and Exchange Commission is working on formalizing regulations.

Thai SEC deputy secretary-general, Jomkwan Kongsakul, has recently confirmed that the regulator plans on issuing formal guidelines that would support the launch of crypto ETFs in Thailand “early this year,” a Jan. 22 report from the Bangkok Post noted.

According to Kongsakul, the SEC has already approved crypto ETFs in principle and is currently working on finalizing detailed investment and operational rules.

Thai regulators view crypto ETFs as a tool that offers investors “ease of access” while eliminating operational risks such as “hacking and wallet security,” which has long been a concern for many investors.

However, Kongsakul acknowledged that a successful rollout would require close cooperation between licensed digital asset exchanges and asset management companies.

To address potential liquidity challenges, the SEC is considering introducing market makers, such as exchanges, financial institutions, or corporations that hold cryptocurrencies on their balance sheets, Kongsakul added.

At the same time, the regulator also plans to regulate and enable crypto futures trading on the Thailand Futures Exchange by recognizing digital assets as an underlying asset class under the Derivatives Act.

The SEC wants to treat crypto as “another asset class,” allowing investors to allocate up to 5% of a diverse portfolio to digital assets.

Finally, the SEC is working on launching a tokenization sandbox with the Bank of Thailand and will “encourage issuers of bond tokens to enter the regulatory sandbox.” As previously reported by crypto.news, the SEC selected crypto exchange KuCoin as the first platform to participate in a bond initiative supported by the Thailand government.

Thailand leans on crypto

Thailand’s pro-crypto approach began taking shape last year after its Ministry of Finance announced a five-year exemption on capital gains tax for crypto transactions to promote the country as a global digital asset hub.

Around the same time, the SEC also launched a public consultation on new digital asset listing rules for licensed crypto exchanges, as retail trading remains popular even as crypto payments are banned.

Meanwhile, later in the year, Deputy Prime Minister Pichai Chunhavajira positioned cryptocurrencies as a key pillar in modernizing the financial infrastructure of the country’s tourism sector.