On 24 August 2026, Thailand's Securities and Exchange Commission published two consultation papers. The first proposes rules for crypto exchange-traded funds domiciled in Thailand. The second proposes revised qualification criteria for foreign digital asset custodians engaged by Thai mutual funds and private funds that invest in digital assets. Both papers are at consultation stage and open for public comment until 20 September 2026.
The proposals operate under the Securities and Exchange Act B.E. 2535 (1992) and the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018). The draft ETF rules require each Thai-domiciled crypto ETF to maintain a time-weighted average net exposure of at least 80% to its reference digital asset across an accounting year. The custodian paper proposes that the SEC may approve foreign digital asset custodians case by case as a permitted alternative to the current requirement to use a Thailand-licensed custodian, subject to financial soundness, operational resilience, and regulatory compliance conditions set by the SEC.
Asset managers operating mutual funds or private funds in Thailand that currently hold foreign crypto ETF positions must assess whether the domestic ETF eligibility rules affect their fund documentation and investment mandates. ETF sponsors planning Thai-domiciled products must structure the vehicle to comply with the 80% exposure floor from inception. Foreign custodians seeking qualification under the revised criteria must satisfy SEC-specified conditions and obtain approval before acting for a Thai fund.
The comment period closes 20 September 2026, and the SEC has not announced a target effective date for either paper. Existing investment limits on digital asset exposure within mutual funds and private funds remain unchanged under both proposals. The SEC has retained discretion to restrict or conditionally approve foreign custodian use based on prevailing market circumstances.
Licentium advises digital asset businesses and fund managers on regulatory compliance across Southeast Asia and globally. Work we undertake includes digital asset fund structuring, custodian regulatory assessments, ETF regulatory strategy, and investment manager licensing across multiple jurisdictions.