Thai SEC Proposes New Rules for Cryptocurrency Investments

The Securities and Exchange Commission of Thailand (SEC) has just announced a proposal for new regulations to allow mutual funds and private funds to invest in digital assets, in order to keep up with international development trends and meet the growing demand of institutional investors. The draft was published on Wednesday, calling for public input on adjusting the criteria for funds investing in digital assets. According to the proposal, the SEC will allow securities companies and asset management companies to provide services to large investors who want to diversify their investment portfolios through products related to cryptocurrencies, such as Exchange Traded Funds (ETFs). The SEC's goal is to harmonize with international trends in the digital asset sector and create more opportunities for investors to expand their investment portfolios under professional management. This move comes against the backdrop of growing global demand for Bitcoin and Ethereum ETFs, which have been listed in the US and allowed to trade since January and May, respectively. The SEC also noted that while Thai investors have been able to access foreign cryptocurrency ETFs, the framework for mutual funds in Thailand, established since 2015, has not kept up with the changes in the global digital asset investment landscape. "According to the SEC Office's assessment, adjusting the investment criteria for digital assets is necessary to keep up with international trends," the statement said. The new regulations will distinguish between high-risk assets like Bit and stablecoins like Tether, which are designed to maintain stable value. The Thai SEC also emphasized the fiduciary duty of fund managers in selecting appropriate investment channels and managing related risks. The draft sets limits on the level of exposure to digital assets for different types of funds. Retail mutual funds will be limited to a maximum of 15% investment in cryptocurrencies, while institutional and ultra-high-net-worth funds will not be limited, but must still comply with diversification requirements to manage risk. The SEC's proposal also includes regulations on the holding period of assets like Bit or ETH, with a maximum holding period of five business days for trading purposes. "Funds may need to hold digital assets to execute buy, sell or exchange transactions," the statement said. The SEC will accept public feedback on this proposal until November 8, and the official regulations are expected to be issued next year. Join Telegram: https://t.me/tapchibitcoinvn Follow Twitter (X): https://twitter.com/tapchibtc_io Follow Tiktok: https://www.tiktok.com/@tapchibitcoin Mr. Teacher According to Decrypt