Thailand is working to expand its domestic cryptocurrency exchange-traded fund plans beyond Bitcoin to include other digital tokens, with the rollout expected early next year, according to the Securities and Exchange Commission (SEC).
The SEC and other agencies are drafting rules for new exchange-traded funds (ETFs) that could be offered by local mutual funds and institutions, secretary-general Pornanong Budsaratragoon said, elaborating on plans announced earlier this year.
‘Our possibility now is to broaden the criteria for the crypto, such as a basket of cryptocurrencies,’ Ms Pornanong said in an interview on Wednesday. ‘We want to have broader supply of those crypto assets in the ETFs.’
Thailand has been accelerating its push to become a regional crypto hub, rolling out policies to make tokenised products part of mainstream investment choices.
Like other regional markets exploring the digital space, the move could attract younger participants, especially as the stock market is down 7.6% this year. These efforts would come with new risks, however, and the SEC is seeking to upgrade its oversight powers.
Currently, Thai investors can gain crypto exposure by buying tokens directly or putting money into funds managed by licensed asset management companies that invest only in overseas cryptocurrency ETFs. The new initiative would go beyond those limitations.
‘Some investors, especially young people, prefer to have exposure in cryptocurrencies in their portfolios as a way to diversify,’ Ms Pornanong said. ‘One of our main tasks is to facilitate’ that demand.
Crypto momentum has picked up across Thailand’s financial markets. Major players such as Binance and Kasikornbank are targeting growth in the sector. Former prime minister Thaksin Shinawatra remains one of the country’s vocal crypto advocates.
The expansion of Thailand’s digital asset space coincides with the SEC’s push for a bill to broaden oversight powers. The proposal would allow the regulator to order companies to suspend major transactions if financial irregularities are found.
It would also empower the SEC to investigate market-impacting cases such as insider trading, rather than relying solely on limited police resources.
The bill has cleared initial screening by legal advisers to the government, and the SEC is in talks with the new administration to accelerate parliamentary approval, Ms Pornanong said.
‘Speedy enforcement against wrongdoers will definitely revive confidence in our oversight of the capital markets,’ she said.