Thailand’s SEC Proposes Crypto Investment Expansion for Mutual and Private Funds

In response to increased demand from institutional investors, Thailand’s Securities and Exchange Commission (SEC) is working toward permitting mutual and private funds to invest in cryptocurrency goods. On October 9, 2024, a proposal was released with the goal of expanding access for cryptocurrency exchange-traded funds (ETFs) that are listed on American stock markets.

Large investors would be able to purchase cryptocurrency-related products from securities companies and asset management firms thanks to the SEC’s plan. SEC deputy secretary-general Anek Yooyuen told the Bangkok Post that “investment tokens will be included with the same investment ratios as transferable securities such as stocks and bonds.” He clarified that the identical risk profiles of tokens and conventional securities are the cause of this shift.

At the same time, the proposal highlights that various digital assets will be treated differently depending on their risk levels. High-risk assets, like Bitcoin, will face stricter rules compared to more stable digital assets, such as stablecoins.

New Rules for Fund Management and Investor Restrictions

For retail mutual funds, the SEC plans to impose a 15% cap on crypto investments. However, institutional and high-net-worth investors will face no such restrictions, giving them greater flexibility. The regulator also aims to revise several guidelines for managing funds that invest in cryptocurrencies. These updates will include protocols for asset custody, value calculation, information transparency, and advertising practices.

In addition, the SEC plans to authorize Initial Coin Offering (ICO) portals and permit outsourced companies to handle token fundraising and project design. However, the regulator is also tightening its grip on market integrity. The SEC plans to increase fines for market manipulation, “naked short-selling,” and inappropriate trading practices.

Earlier this year, the SEC cracked down on unlicensed crypto exchanges, emphasizing its commitment to a regulated digital asset space.