Thailand Proposes Crypto Fund Regulations

Thailand’s Securities and Exchange Commission (SEC) has proposed draft regulations permitting mutual and private funds to invest in cryptocurrency.

The proposed principle, announced on Wednesday, is soliciting public feedback regarding the revisions to the investment criteria of mutual funds in digital assets.

Interest in cryptocurrency investment is rising, which coincides with this trend. Thailand, one of the most crypto-friendly nations in the world, is ranked 10th in adoption on a global scale.

The regulator observed that the funds will be permitted to invest in crypto exchange-traded funds (ETFs) listed on US exchanges. Additionally, it enables funds to select investment tokens, which has piqued the interest of Thai investors.

“The funds will be permitted to invest in investment tokens by the current investment limits of traditional securities, including the single entity limit, group limit, and concentration limit.”.

The announcement stated that institutional investors and ultra-high-net-worth individuals with a high tolerance for risk will be permitted to engage in crypto ETFs without any investment limit.

Anek Yooyuen, the deputy secretary-general of the Thai Securities and Exchange Commission (SEC), stated that investment tokens will follow the same investment ratios as transferable securities.

The reason for this is that they possess critical risks and characteristics that are comparable to traditional securities, such as debt securities, according to Bangkok Post.

To facilitate establishing and managing funds that invest in digital assets, relevant criteria will be revised, including asset custody, digital asset value calculation, information disclosure, and appropriate advertising.

One Asset Management (ONEAM) issued Thailand’s inaugural crypto exchange-traded fund (ETF) in June. A significant milestone in the country’s evolving regulatory framework for digital assets was achieved when the Thai Securities and Exchange Commission (SEC) endorsed ONEAM’s Bitcoin ETF.

Thailand SEC Mulls Initial Coin Offering, Increase Penalties for Violating Crypto Firms

Furthermore, the regulator contemplates permitting authorized initial coin offering portals to employ outsourced companies.

Yooyuen further stated, “The SEC has endorsed this measure; however, a public hearing is required before its implementation.”

Additionally, the Thai Securities and Exchange Commission (SEC) will permit ten private companies to conduct cryptocurrency exchange trials for the Thai baht as part of the digital asset regulatory sandbox project.

Additionally, crypto firms that contravene the SEC’s regulations are regarded as committing a grievous offense. Consequently, the regulator intends to impose heightened penalties on these organizations and revoke their licenses.

A maximum fine of 1 million to 3 million baht will be imposed on securities firms that submit trading orders that are deemed inappropriate. The report indicated that investors who violate laws by manipulating equity are subject to civil and criminal penalties.