Thai SEC Proposes New Regulations for Fund Investments in Crypto Assets –

• The Thai SEC is proposing new regulations to enable mutual and private funds to invest in cryptocurrencies.
• A draft proposal has been released for public feedback until November 8, with final regulations expected next year.

The Thai Securities and Exchange Commission (SEC) has proposed updating investment regulations to allow mutual and private funds to invest in crypto assets. This comes as the country sees growing interest in cryptocurrency, especially with more institutional players getting involved.

The draft proposal released by the Thai SEC on Oct 09 currently seeks public feedback on new criteria for funds investing in digital assets. This move follows the U.S. SEC approval of the first spot Bitcoin ETF in January, which sparked growth and attracted interest from Thai investors and securities firms. 

The Thai SEC is also looking to let securities companies and asset managers offer crypto-related services, including permitting funds to invest in crypto ETFs listed on U.S. exchanges, as well as investment tokens. 

Proposed Regulations and Investment Limits for Crypto Assets in Thailand

These tokens will have similar investment limits as traditional securities like stocks and bonds, as they are considered to have comparable risks. The SEC also intends to provide more flexibility for funds targeting wealthy and institutional investors, removing investment limits for those interested in crypto ETFs. 

However, retail mutual funds will be capped at a 15% allocation to digital assets to manage risk. For institutional and ultra-high-net-worth investors, there are no limits on investments in crypto ETFs, and the funds are allowed to allocate up to 20% of their net asset value (NAV) to crypto assets and derivatives.

Additionally, the SEC is allowing select private firms to participate in a sandbox project where digital tokens or cryptocurrency can be exchanged for Thai baht, as per a local report by Bangkok Post. The regulator is also considering stricter penalties for those violating SEC laws, with plans to raise fines and enforce penalties for serious offenses like stock manipulation and naked short selling.

Mainly, the public comments on the proposal are being accepted until November 8, with final regulations expected to be implemented next year.

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