- Thai SEC proposed to allow mutual and private funds to invest in crypto
- This includes investing in ETFs traded and listed on United States stock exchanges
- However, this is also followed by big regulatory updates
- The different requirements will depend on companies structures and assets’ riskiness
- The penalties for non-compliance are also expected to increase
On October 9 Thai SEC proposed to allow mutual and private funds to invest in crypto products such as crypto ETFs traded and listed on United States stock exchanges.
In this way, they want to satisfy the growing interest of investors and expand their ability to invest in new crypto investment products.
The Thai SEC is also making this part of a broader initiative and is going to look at a wider range of crypto activities by the funds and the relevance of regulations on them, which include asset custody, value calculation, disclosure, and advertising.
Penalties for violations are also expected to be reviewed in the direction of greater severity and tightening, with different types of assets in terms of risk possibly having different rules, such as Bitcoin and stablecoins.
Thai SEC Proposal Is Going to Be A Big Deal
The proposal is designed to allow securities and asset management firms to offer enhanced cryptocurrency services and meet growing investor demand for the rapid launch of ETFs in the US.
SEC deputy secretary-general Anek Yooyuen told the Bangkok Post:
“Investment tokens will be included with the same investment ratios as transferable securities such as stocks and bonds because they have similar characteristics and risks. Relevant criteria will be revised to support the establishment and management of funds investing in digital assets.”
This imposes additional revisions to certain regulations and rules, and these are likely to be different in cases involving different asset types.
For example, higher-risk assets like Bitcoin will be regulated in one way, while stablecoins will be regulated in another.
It is also expected to revise all aspects of fund operations, such as asset custody, value calculation, disclosure, and advertising.
It is already known that there will be a difference between the type of organization, namely restrictions with retail mutual funds limited to a 15% allocation in crypto investments, while institutional and high-net-worth investors would have no cap on exposure.
ICOs are expected to be sanctioned so that funds can use outsourcing companies to raise funds for tokens or develop investment projects, again subject to regulation.
Of course, regulatory violations are one of the key points to consider, such as increasing penalties for “naked short-selling” when companies make orders aimed at market manipulation.
Conclusion
Thailand is one of the active areas in crypto, retail cryptocurrency trading in the country is highly popular, with the largest Thai crypto exchange Bitkub showing around 30 million dollars every day.
It is likely, therefore, that this global regulatory update will have to further fuel interest in crypto, as well as allow for the creation of a number of crypto products and services not previously available.
Like the rest of the Asian region, Thailand recognizes the vast possibilities of this technology and is already trying to use it to grow its capital and take a stronger position in the crypto space.
