Thailand’s Securities and Exchange Commission (SEC) has proposed draft regulations that would allow mutual and private funds to invest in cryptocurrencies. The proposed principle is currently seeking public feedback on revisions to mutual funds’ investment criteria in digital assets, reflecting the increasing interest in cryptocurrency investment. Thailand, known as one of the world’s most crypto-friendly nations, ranks 10th in terms of global adoption. The funds will be permitted to invest in crypto exchange-traded funds (ETFs) listed on US exchanges, as well as choose investment tokens, attracting the interest of Thai investors. In addition, the proposed regulations include investment limits similar to traditional securities for high-risk tolerance investors.
Thai SEC Deputy Secretary-General Anek Yooyuen highlighted that investment tokens will have the same investment ratios as traditional securities due to their similar key risks and features. This will support the establishment and management of funds investing in digital assets, including provisions for asset custody, digital asset value calculation, information disclosure, and appropriate advertising. The regulatory framework will be revised to accommodate the unique characteristics of these investment instruments. Thailand previously approved its first crypto ETF in June, issued by One Asset Management (ONEAM), marking a significant milestone in the country’s regulatory framework for digital assets.
In addition to allowing mutual and private funds to invest in cryptocurrencies, the Thai SEC is also considering other measures to enhance the regulatory environment for digital assets. These measures include allowing authorised initial coin offering portals to use outsourced companies after a public hearing process. Furthermore, the regulator will permit 10 private companies to explore trials for exchanging cryptocurrencies for Thai baht as part of a digital asset regulatory sandbox project. The SEC also aims to increase penalties for violating crypto firms, including fines for securities firms that send inappropriate trading orders and civil and criminal penalties for investors who manipulate stocks.
The proposal by Thailand’s Securities and Exchange Commission represents a significant step towards regulatory clarity and support for cryptocurrency investments in the country. By allowing mutual and private funds to invest in cryptocurrencies, the regulator is opening up new investment opportunities for Thai investors while aligning with global trends in digital asset adoption. The proposed regulations also demonstrate Thailand’s commitment to creating a robust regulatory framework for digital assets, including measures to enhance investor protection and market integrity. The endorsement of investment tokens and crypto ETFs reflects the evolving nature of the financial industry and the increasing acceptance of cryptocurrencies as legitimate investment instruments.
The Thai SEC’s move to explore trials for exchanging cryptocurrencies for Thai baht and allowing authorised initial coin offering portals to use outsourced companies reflects a proactive approach to fostering innovation in the digital asset space. By facilitating the trialing of new technologies and processes, the regulator is creating an environment that supports the growth and development of the crypto industry in Thailand. The proposed increase in penalties for violating crypto firms underscores the regulator’s commitment to enforcing compliance with regulations and maintaining market integrity. These measures aim to deter fraudulent activities and ensure that market participants adhere to the established rules and guidelines.
Overall, Thailand’s initiatives to regulate and support the cryptocurrency sector are likely to contribute to the country’s position as a leading hub for digital asset innovation in the region. The proposed regulations for mutual and private funds to invest in cryptocurrencies, alongside other measures such as allowing ICO portals to use outsourced companies and exploring trials for crypto-fiat exchanges, demonstrate the country’s commitment to fostering a supportive environment for digital asset innovation and investment. The proposed revisions to the regulatory framework reflect Thailand’s proactive approach to adapting to the changing landscape of the financial industry and embracing the opportunities presented by cryptocurrencies and blockchain technology.
