Thailand SEC Opens Doors to Crypto Investment Funds

• Thailand SEC proposes allowing mutual and private funds to invest in digital assets, focusing on institutional and high-net-worth investors.
• Ripple acknowledges Thailand’s potential for XRP adoption, praising the Bank of Thailand leadership in CBDC research.

A major first in the integration of cryptocurrencies into Thailand’s financial system, the Thai Securities and Exchange Commission (SEC) has proposed allowing mutual and private funds to participate in digital assets.

Aimed at addressing the increased interest in crypto investment, especially from institutional investors, this action underlines the nation’s resolve to increase the part digital assets play in its economy.

Under the proposed rules, mutual funds would be allowed to invest in exchange-traded funds (ETFs) listed on U.S. exchanges as well as other digital assets, provided they follow current investment limitations usually applied to conventional securities.

Thailand Strengthens Its Role in the Global Digital Asset Landscape 

By giving institutional and high-net-worth investors more access to these digital assets, the SEC’s proposal is meant to draw in them. Institutional investors would not have any such constraints, unlike regular investors, who would be limited to 15% of their portfolio in crypto assets, therefore enabling more notable market involvement.

The plan also guarantees that these monies will have to follow rigorous management policies, including asset custody, value computation, and disclosure rules, guaranteeing openness and reducing the risks connected with great volatility in the crypto market.

Moreover, the action of the SEC coincides with Thailand’s confirmation of its major role in the worldwide scene of digital assets. The regulator’s plan to create a “Digital Asset Regulatory Sandbox” shows even more the nation’s will to test and include additional blockchain technologies into its economy.

Although this would need permission from the Bank of Thailand, which presently forbids the use of crypto for payment, this sandbox would let private companies test initiatives that would help the conversion of crypto assets, for local money.

The SEC has made clear despite the regulatory fervor that they are also dedicated to preserving market integrity. Plans to raise fines for behaviors including naked short-selling and market manipulation accompany the suggested rules.

Reinforcing its position on guaranteeing a regulated and safe environment for both institutional and retail players in the crypto space, the agency has also earlier in the year taken actions to close unlicensed crypto exchanges.

On the other hand, as we previously reported, Ripple has also seen Thailand’s potential in embracing digital assets. In a letter to Thai officials, Ripple praised the nation’s progressive attitude, especially noting Bank of Thailand Central Bank Digital Currency (CBDC) research leadership.