Thai SEC Proposes Regulations for Crypto Investment in Mutual and Private Funds Amid Growing Interest in Digital Assets

Thai SEC Proposes Regulations for Crypto Investment in Mutual and Private Funds Amid Growing Interest in Digital Assets

The Securities and Exchange Commission (SEC) of Thailand has introduced draft regulations that would allow mutual and private funds to invest in cryptocurrencies. Announced on Wednesday, these proposed rules are open to public feedback, with a focus on updating mutual funds' investment criteria for digital assets as interest in cryptocurrency continues to rise. Thailand, recognized as one of the world’s most crypto-friendly countries, currently ranks 10th globally for cryptocurrency adoption.

According to the proposed regulations, the funds will be permitted to invest in cryptocurrency exchange-traded funds (ETFs) listed on U.S. exchanges, as well as in investment tokens. These digital investment options have garnered significant interest from Thai investors. The SEC emphasized that investments in these tokens will be subject to existing limits applied to traditional securities, such as single entity limits, group limits, and concentration limits.

For institutional investors and ultra-high-net-worth individuals with a high risk tolerance, the regulations propose that they be allowed to invest in cryptocurrency ETFs without any investment limits. Anek Yooyuen, Deputy Secretary-General of the Thai SEC, stated that investment tokens will have the same investment ratios as other transferable securities, given that they share similar risks and characteristics to traditional securities, such as debt instruments.

In addition to investment rules, the proposed changes would also address the management of digital asset funds, covering areas such as asset custody, digital asset value calculation, information disclosure, and advertising guidelines. Thailand recently approved its first cryptocurrency ETF, launched by One Asset Management (ONEAM), which focuses on Bitcoin. This development marks a significant step forward in Thailand's evolving regulatory landscape for digital assets.

The SEC is also considering measures related to initial coin offerings (ICOs) and increasing penalties for non-compliant crypto firms. One potential change would allow ICO portals to outsource certain activities, further refining the regulatory framework for digital assets in the country.