Key Takeaways
Thailand’s Securities and Exchange Commission (SEC) has proposed new regulations to allow mutual and private funds to invest in crypto investment products, including United States-based Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs).
The Thai SEC is seeking public feedback on a draft proposal to overhaul regulations for fund investments in crypto assets and related products.
The regulator published the proposal on Oct. 10, kicking off a month-long consultation period that ends on Nov. 8.
The change aims to provide investors with greater access to crypto investment opportunities and level the playing field for Thai asset managers and brokerages.
The SEC is inviting comments from industry stakeholders and the general public as it looks to finalize the new rules.
Under the proposed reforms, funds and institutional investors will be allowed to invest in crypto ETFs via private funds.
While there is no limit on institutional clients’ investments, funds will allocate up to 20% of their total allocation to crypto assets and crypto-asset derivatives.
On the retail side, funds catering to individual investors will be permitted to invest only 5% of their assets in crypto ETFs and foreign collective investment schemes for diversification purposes.
The new draft regulation aims to provide a clearer framework for funds investing in digital assets. According to SEC Deputy Secretary-General Anek Yooyuen,
“Relevant criteria will be revised to support the establishment and management of funds investing in digital assets, such as asset custody, digital asset value calculation, information disclosure and appropriate advertising,”
Once approved, mutual and private funds will have 90 days to comply with the new regulations.
Thailand appears to be taking a cue from Taiwan’s regulatory playbook, proposing to open up its traditional investment market to crypto investment products.
Taiwan recently unveiled plans to allow institutional investors to invest in U.S.-based crypto ETFs, a move that aligns with its ambitions to become a crypto hub despite its proximity to China.
Thailand, one of the earliest pro-crypto nations in Asia, is seeking to capitalize on its growing appetite for crypto investment products.
The country’s crypto market has been booming, ranking 10th globally in terms of adoption.
The Thai SEC’s move reflects a trend seen in other Asian markets, including Hong Kong, Singapore, and Indonesia, which have rapidly adapted their regulatory approaches to incorporate the benefits of the crypto market.
In contrast, the U.S. has taken a more cautious approach, with stringent enforcement and a lack of clarity on crypto regulations. Meanwhile, Asian countries have imposed strict registration requirements and heavy penalties for violations to ensure customer protection.
The Thai SEC’s proposal is a significant step forward for the country’s crypto market, which has grown rapidly since the approval of Bitcoin and Ethereum ETFs in the U.S. With its latest move, Thailand is poised to further establish itself as a key player in the region’s crypto landscape.