Thailand is working to expand its domestic cryptocurrency exchange-traded fund (ETF) plans beyond bitcoin to include other digital tokens, with the rollout expected early next year, according to the market regulator.

The Securities and Exchange Commission (SEC) and other agencies are drafting rules for new ETFs that would be offered by local mutual funds and institutions, Pornanong Budsaratragoon, the SEC’s secretary general, said, elaborating on the plans announced earlier this year, Bloomberg reported.

“Our possibility now is to broaden the criteria for the crypto such as a basket of cryptocurrencies,” Pornanong was quoted saying in an interview Wednesday. “We want to have broader supply of those crypto assets in the ETFs.”

According to Bloomberg, Thailand has been accelerating its push to become a regional crypto hub, rolling out policies to make tokenised products part of mainstream investment choices.

Similar to other regional markets exploring this space, the move could attract younger participants, especially as the stock market remains down 7.6 percent this year. These efforts would come with new risks, while the regulator seeks to upgrade its oversight powers, according to the report.

Currently, Thai investors can gain crypto exposure by buying tokens directly or pouring money into funds managed by licensed asset management companies that invest only in overseas cryptocurrency ETFs. The new initiative would go beyond those limitations, the report added.

“Some investors, especially young people, prefer to have exposure in cryptocurrencies in their portfolios as a way to diversify,” 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 Holdings Ltd and Kasikornbank Pcl are targeting growth in the sector. Former prime minister Thaksin Shinawatra — the de facto leader of the Pheu Thai Party that led the previous government — 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 SEC to order companies to suspend major transactions if financial irregularities are found. It would also empower the agency to investigate market-impacting cases such as insider trading, rather than relying solely on limited police resources.

The bill has cleared the screening of the prime minister’s law-drafting body, and the SEC is in talks with the new government to accelerate parliamentary approval, Pornanong said.

“Speedy enforcement against wrongdoers will definitely revive confidence in our oversight of the capital markets,” Pornanong added.

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