Introduction: from risk containment to market building

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On 9 October 2026, Thailand’s Securities and Exchange Commission (SEC) published a package of 11 notifications governing the creation and operation of exchange-traded funds that invest in crypto assets (crypto ETFs). All of them took effect on 16 October, which was yesterday. This is the most concrete step yet for a country that, in 2018, became one of the first in Asia to license crypto businesses (Emergency Decree on Digital Asset Businesses B.E. 2561), now moving toward integrating digital assets into the traditional stock market. Elliptic analysts described this summer shift as regulation moving from risk containment to market building.

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The key question for business is whether this is a genuine market opening or a controlled corridor for a narrow group of participants. The answer is both.

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1. What exactly came into force

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• Product. A passive fund that tracks the price of a crypto asset. Average net exposure to a single asset must be at least 80% of net asset value (NAV) over each accounting year.
• Assets. Initially, only Bitcoin and Ethereum. The SEC will later set the list based on liquidity, broad market acceptance, network security, and investor protection.
• Listing. Exclusively on the Stock Exchange of Thailand (SET).
• Custody. Fund assets may be held only by digital asset custodians licensed by the SEC. In the future, the regulator may allow a foreign custodian that meets the required qualifications.
• Management. An asset management company may outsource digital asset management only to a licensed DA fund manager. Custodians and other licensed operators may register as mutual fund supervisors, but only for crypto ETFs.
• Investor protection. Investors must acknowledge that they understand the risks before trading. Brokers may not provide margin loans to buy crypto ETFs, and clients are urged to avoid concentrating their portfolios in digital assets.
• Access for local funds. Mutual and private funds may now buy Thai crypto ETFs (previously only foreign ones), within existing limits.
• Initial-phase limits. Depositary receipts on foreign crypto ETFs are not allowed, and brokers may not help clients who are neither institutional nor ultra-high-net-worth investors to buy foreign crypto ETFs.

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2. Part of a broader strategy

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The new rules are not an isolated event. The SEC’s three-year strategic plan for 2026–2028 places digital assets at the center of capital market development. In February 2026, the regulator announced that crypto assets could serve as underlying assets for regulated derivatives and began coordinating with TFEX. In parallel, the SEC and the Bank of Thailand are developing sandboxes for tokenization and programmable payments, including stablecoins in atomic settlement and 24/7 trading. The regulator itself calls crypto another asset class and suggests that investors with higher risk tolerance allocate 4–5% of a portfolio to it.

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3. The flip side: perimeter and discipline

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Market opening comes with tighter border controls.

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• Foreign operators. The 2025 amendments extended oversight to overseas platforms, and the licensing requirement applies regardless of physical presence in Thailand. In February 2026, the SEC filed a criminal complaint against a licensed Thai broker, its affiliated overseas platform and executives of both companies.
• Stablecoins. In September, the SEC put draft principles for stablecoin transactions out for public consultation (until 25 September). Under the draft, deposits and withdrawals would be allowed only between accounts or wallets verified as belonging to the same customer, brokers and dealers would be barred from off-platform deals directly between customers, and the regulator’s powers to demand corrective action would be strengthened. One source also mentions a daily cap of about $150,000, but I could not confirm this in the official text. The final rules have yet to be adopted.

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4. The tax logic

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The government reinforces the licensed perimeter with a tax incentive. Individuals’ capital gains from selling crypto assets through an SEC-licensed operator are exempt from personal income tax from 1 January 2025 to 31 December 2029. VAT is also not charged on trades through licensed operators. Income from mining and staking remains taxable, and after 2029, absent an extension, ordinary progressive rates of 5–35% will apply. The Revenue Department is also preparing to adopt the OECD’s Crypto-Asset Reporting Framework (CARF) for automatic exchange of crypto transaction data.

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So the tax exemption and the ETFs pull in the same direction: keeping activity inside licensed infrastructure.

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5. Critical analysis

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• A narrow funnel. Only BTC and ETH, and only a passive model. No altcoin or actively managed products for now.
• Localized infrastructure. The requirement for a local licensed custodian and the ban on DRs on foreign funds protect Thai operators, but also create a barrier for foreign providers.
• Launch timing unknown. As of 17 October, I found no confirmed listings of specific funds. Timing depends on the readiness of asset managers, custodians, and SET.
• Payment risks. If the stablecoin draft is adopted as proposed, the ban on transfers to third-party wallets would complicate some B2B payments and OTC deals.
• Tax sunset. After 2029, the tax appeal disappears unless the government extends it.

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6. What this means for Ukrainian business

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• Service providers. Licensed operators must prove operational readiness (staff, systems). This creates demand for compliance, KYC/AML, transaction monitoring, custody and tokenization solutions, and analytics.
• Crypto and fintech projects with Thai clients. Foreign operators also need an SEC license, so serving Thai users without one is risky.
• Structuring a presence. If you set up a Thai company, factor in the stricter DBD checks on nominee shareholders and the new licensing logic we covered earlier.
• Taxes. Whether the Thai exemption applies to you depends on tax residency. For cross-border services, the 2004 Ukraine–Thailand double tax treaty also applies. Consult a tax adviser before structuring.

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Conclusion

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The launch of crypto ETFs moves Thailand from licensing exchange operators to integrating crypto assets into the stock market. The model is clear: broad access through regulated channels, tight perimeter control, and tax incentives for those who stay inside. For foreign businesses, this is an opportunity, but only for those ready to operate under local rules on licensing, custody, and reporting.

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