Thai SEC Proposes Regulations for Crypto Investment in Mutual and Private Funds, Allowing for Bitcoin ETFs
The Thailand Securities and Exchange Commission (SEC) has put forth draft regulations that would permit mutual and private funds to invest in cryptocurrencies. The proposal, which was announced on Wednesday, is currently open for public feedback regarding potential revisions to the investment criteria for mutual funds in digital assets.
This move comes at a time when interest in cryptocurrency investment is on the rise, with Thailand being ranked as the 10th most crypto-friendly nation in the world. The SEC stated that these funds would be allowed to invest in crypto exchange-traded funds (ETFs) listed on US exchanges. Additionally, funds would also have the option to invest in specific tokens, which has garnered the attention of Thai investors.
According to the announcement, the funds will be subject to the current investment limits applied to traditional securities, such as limits on single entities, groups, and concentration. However, institutional investors and high-net-worth individuals with a high-risk tolerance will have no investment limit when it comes to investing in crypto ETFs.
Anek Yooyuen, the Thai SEC’s deputy secretary-general, stated that investment tokens would be subject to the same investment ratios as transferable securities, as they share similar risks and features. This includes debt securities, as reported by the Bangkok Post.
The SEC also plans to revise relevant criteria to support the establishment and management of funds investing in digital assets. This includes areas such as asset custody, digital asset value calculation, information disclosure, and appropriate advertising.
Thailand approved its first crypto ETF back in June, issued by One Asset Management (ONEAM). This marked a significant milestone in the country’s evolving regulatory framework for digital assets.
In addition to these proposed regulations, the SEC is also considering allowing authorized initial coin offering (ICO) portals to use outsourced companies. However, this measure would need to undergo a public hearing before implementation.
Furthermore, as part of their digital asset regulatory sandbox project, the Thai SEC plans to allow 10 private companies to conduct trials for exchanging cryptocurrencies for Thai bhat.
The SEC also intends to increase penalties for crypto firms that violate their rules. Securities firms that engage in inappropriate trading orders could face fines ranging from 1 million to 3 million baht. Individuals who manipulate stocks in violation of the law could face civil and criminal penalties.
Overall, these proposed regulations and initiatives demonstrate Thailand’s commitment to fostering a conducive environment for cryptocurrency investment and ensuring the integrity of the market.