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Thailand Securities and Exchange Commission (SEC) is taking steps to enable mutual and private funds to invest in crypto products. On October 9, the finance regulator put forward a proposal that would allow funds to invest in crypto exchange-traded funds (ETFs) listed on US stock exchanges.
This move is seen as a response to the rising demand for diversified crypto exposure among large-scale investors.
Anek Yooyuen, the SECās deputy secretary-general, stated that āinvestment tokensā will be treated similarly to traditional securities such as stocks and bonds, given their comparable characteristics and risks. Yooyuen explained that the SEC will revise the relevant criteria to facilitate the establishment and management of funds focused on digital assets. This proposal highlights the regulatorās forward-thinking approach in aligning crypto investment products with more traditional financial instruments.
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Notably, in March, Thailand SEC approved asset management firms to provide institutional investors with exposure to US spot Bitcoin ETFs.
Different Rules for Various Digital Assets
Thailand SEC is proposing a tiered approach to regulate crypto investments, differentiating between high-risk assets like Bitcoin and more stable options such as stablecoins. Retail mutual funds, in particular, would face stricter limitations, with their crypto allocations capped at 15%. In contrast, institutional and high-net-worth investors would enjoy greater flexibility, as no such cap will be imposed on their exposure to digital assets.
To manage these new investment products, the SEC intends to implement updated guidelines covering asset custody, value calculation, information disclosure, and advertising practices. Additionally, the Thailand regulator will allow initial coin offering (ICO) portals to outsource token fundraising operations, providing asset management firms with more efficient tools to launch crypto-related products.
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Enhanced Regulatory Oversight
Moreover, Thailand SEC is also preparing a Digital Asset Regulatory Sandbox. This initiative will involve ten private companies running trial projects for exchanging crypto assets in return for local currency, potentially paving the way for legal crypto payments in the country.
However, the SEC needs to collaborate with the Bank of Thailand to seek approval for using cryptocurrency as a valid means of payment, a practice that is currently prohibited by the central bank.
The regulator also plans to tighten its oversight, introducing higher fines for activities like market manipulation and unlicensed crypto mining operations. Earlier this year, the SEC blocked unlicensed exchanges from operating, underscoring its commitment to maintaining a secure and regulated market for investors.
