Thailand’s SEC has opened public comments on a proposed crypto ETF framework that would initially center trading and custody within domestic institutions for Bitcoin and Ethereum products.

The framework prioritizes onshore digital asset custodians, while allowing qualified foreign custodians under regulatory oversight, with rules extending to foreign custodians under certain conditions.

The regime aims to widen participation to retail investors, with initial products being passive, single-asset ETFs and substantial investor education and suitability requirements.

Investors would receive product-risk disclosures and education, and intermediaries would assess diversification, risk tolerance, and financial capacity before enabling trading.

In line with safeguards, investors must acknowledge risks prior to purchase, and intermediaries must emphasize diversification and client financial capability.

The article underscores that the information is for informational purposes and not financial advice, based on official SEC communications.

It emphasizes that the content should not be construed as financial guidance.

Observers should monitor upcoming compliance requirements and their impact on market participants as regulatory measures become clearer in the coming months.

The initial products would focus on passive, single-asset funds with education and suitability rules, with comments due by late September 2026 and no launch date set yet.

The plan signals a shift toward retail investors, expanding participation beyond only high-net-worth and institutional players.

Foreign custodians would face regulatory requirements under the framework, with the consultation period running through late September.

Licensed custody providers and qualified operators can apply to supervise crypto mutual funds, with delegated management limited to licensed fund managers.