Thai SEC Allows Crypto Investment in Mutual & Private Funds

Thailand Securities and Exchange Commission (SEC) has proposed new regulations for mutual and private funds to invest in cryptocurrency. The regulations aim to enhance investor growth and promote the digital economy. Further, these regulations emphasize risk management and transparency as cryptocurrency seeps into Thailand’s financial system.

On Wednesday, a draft proposal of the guidelines was released. It requested feedback from the public and stakeholders on future investment in cryptocurrency in Thailand. The proposal outlines the limits for various fund types. Retail mutual funds would be restricted by 15%, while major funds face no such restrictions. The last day to provide feedback on the proposal is November 8, and the final regulation is expected in 2025.

The proposal also allows institutional investors to participate in digital assets. However, the SEC requires that only licensed fund managers manage these assets to protect hedge fund investors. The new guidelines would limit exposure to high-risk crypto assets and enable the practice of diversification. This plan seeks to set up a structure that helps minimize the dangers associated with such assets. 

The idea behind the proposal of the SEC is the rapid rise of the digital asset market in Thailand. With the growing interest in cryptocurrencies and blockchain technology, necessary measures are being taken to follow international demands while maintaining domestic market conditions. It is believed that the new regulations would increase the confidence of investors. This would reduce unfair gains through volatility, fraud, and other manipulations. Moreover, the rules would differ between high-risk assets like Bitcoin and stablecoins like Tether. this is done to ensure a steady value.

With the proposal of new regulations, the authorities in Thailand have finally started to see the opportunities that blockchain and digital currencies can open in the country’s financial sector. However, the SEC is still wary. Although it has not given up on innovation, it ensures that regulatory measures are provided.