Thailand’s Securities and Exchange Commission (SEC) has recently proposed draft regulations that would allow mutual and private funds to invest in cryptocurrencies. The announcement comes at a time when interest in cryptocurrency investments is on the rise, with Thailand ranking 10th globally in terms of adoption. The proposed regulations are currently seeking public feedback on revisions to mutual funds’ investment criteria in digital assets.
Under the proposed regulations, funds will be allowed to invest in crypto exchange-traded funds (ETFs) listed on US exchanges, as well as choose investment tokens. This move has piqued the interest of Thai investors who are looking to diversify their portfolios. Institutional investors and ultra-high-net-worth individuals with a high-risk tolerance will be allowed to invest in crypto ETFs with no investment limit.
Thailand’s SEC deputy secretary-general, Anek Yooyuen, explained that investment tokens will have the same investment ratios as traditional securities, as they share similar risks and features. The regulator is also looking to revise criteria to support the establishment and management of funds investing in digital assets, including aspects such as asset custody, digital asset value calculation, information disclosure, and appropriate advertising.
In addition to allowing mutual and private funds to invest in cryptocurrencies, the Thai SEC is also contemplating allowing authorized initial coin offering (ICO) portals to use outsourced companies. The regulator is set to conduct a public hearing before implementing this measure. Furthermore, the SEC plans to permit 10 private companies to participate in trials for exchanging cryptocurrencies for the Thai baht as part of a digital asset regulatory sandbox project.
To ensure compliance with the regulations, the Thai SEC is looking to increase penalties for crypto firms that violate the rules. Securities firms that engage in inappropriate trading orders could face fines ranging from 1 million to 3 million baht, while investors caught manipulating stocks are subject to civil and criminal penalties. The regulator’s goal is to enforce stricter measures and penalties to maintain order and integrity in the crypto market.
Overall, Thailand’s move to allow mutual and private funds to invest in cryptocurrencies signals a significant step towards mainstream adoption of digital assets in the country. The proposed regulations aim to provide a framework that supports responsible investment in digital assets, while also ensuring investor protection and market integrity. With Thailand being recognized as one of the most crypto-friendly nations globally, these developments are expected to attract more investors and further boost the country’s position in the crypto market.
