The Thai Securities and Exchange Commission (SEC) has proposed new regulations that would allow mutual and private funds to invest in digital assets. This move aims to align with international trends and respond to the growing interest from institutional investors in #Cryptocurrencies .
New Proposal Follows International Development
The preliminary proposal, released on Wednesday, seeks public feedback on revisions to the criteria for funds interested in investing in digital assets. The SEC plans to allow asset management companies to offer services to large investors who wish to diversify their portfolios with cryptocurrencies, such as exchange-traded funds (ETFs).
Responding to the Growing Demand for Cryptocurrencies
This proposal comes in response to the increasing international interest in Bitcoin and #etherreum ETFs, which were recently launched in the U.S. Thai investors already have access to crypto ETFs on foreign markets, but the current regulations for mutual funds in Thailand, which have been in place since 2015, lag behind the latest trends in digital asset investments.
Modernizing Rules for Cryptocurrency Investments
The SEC stated that it is necessary to adjust the criteria for investments in digital assets to match global developments. The new rules will distinguish between high-risk assets, such as #bitcoinâïž , and more stable assets like Tether, which is designed to maintain a stable value.
Responsibility of Fund Managers
The Thai SEC emphasizes that fund managers must fulfill their fiduciary duty when selecting appropriate investment strategies and effectively manage the associated risks.
Limits and Rules for Different Types of Funds
The proposal outlines limits for cryptocurrency investments. Retail mutual funds would be limited to a 15% allocation in crypto investments, while institutional investors and high-net-worth investors would face no such restrictions, although they would need to diversify to better manage risks.
Time Limits on Holding Cryptocurrencies
The proposed rules also provide guidelines for the temporary holding of digital assets, such as Bitcoin or Ethereum, limiting the holding period for trading purposes to a maximum of five business days.
Public Discussion and Next Steps
The proposal is now open for public comments until November 8, with the final version of the rules expected to be introduced next year.
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