Thailand’s Securities and Exchange Commission is considering letting mutual and private funds invest in crypto products, responding to the increasing interest from institutional investors. In a proposal on Oct. 9, the regulator suggested allowing these funds to allocate more investments into crypto exchange-traded funds (ETFs) listed on U.S. stock exchanges.
The new proposal would let securities and asset management firms offer crypto products to major investors. SEC Deputy Secretary-General Anek Yooyuen said they would treat “Investment tokens” similarly to stocks and bonds since they share similar risks and features. He said:
Relevant criteria will be revised to support the establishment and management of funds investing in digital assets.
However, regulators will apply different rules depending on the type of asset, treating high-risk ones like Bitcoin differently from more stable options like stablecoins.
Retail crypto investment capped at 15%
Retail mutual funds would face a 15% limit on their cryptocurrency investments. Although institutional and high-net-worth investors would have no restrictions on how much they could invest. Additionally, the SEC is set to update rules around managing crypto funds, covering areas like how assets are stored, how their value is calculated, the kind of information that needs to be shared, and how these funds can be advertised.
The SEC is also planning to approve ICO (initial coin offering) platforms, which would allow them to collaborate with outside companies for fundraising or project development. However, the regulator aims to increase penalties for “naked short-selling,” improper trading activities, and market manipulation. Earlier this year, the SEC shut down unlicensed crypto exchanges in the country.
This move could open the way for crypto payments in Thailand, which the country’s central bank currently bans. The SEC must consult with the Bank of Thailand to gain approval to use crypto as a payment method. Despite the restrictions, crypto trading is still growing in Thailand. The country’s top exchange, Bitkub, handles nearly $30 million in daily transactions, according to CoinGecko.
