Thailand’s Securities and Exchange Commission (SEC) is making moves to shake up the world of digital assets. On Wednesday, the SEC proposed new rules that would allow mutual and private funds to invest in crypto assets. The regulator’s goal? To keep up with international trends while catering to the rising interest from big-money institutional players.
This draft proposal opens doors for securities firms and asset managers, giving them the green light to offer services connected to digital assets. Investors, especially those who crave diversification, are seeking exposure to the crypto markets. As the SEC tries to keep pace with developments outside Thailand, this proposal looks to allow investment in products like crypto exchange-traded funds (ETFs), a hot topic across the globe.
Institutional Interest Drives Crypto Adoption
Institutional demand for crypto investments, particularly U.S.-listed Bitcoin and Ethereum ETFs, is rising fast. These funds were cleared for trading in January and May, and international investors jumped on board. The SEC’s draft acknowledges this surge, aiming to give Thai funds the same opportunity. So far, Thai investors have only been able to access crypto ETFs through overseas platforms, but this proposal could change that.
Thailand’s mutual fund framework, which has been in place since 2015, hasn’t kept up with how digital asset investments have evolved. The SEC recognizes the need for change. โThe SEC Office sees fit to adjust the criteria for accepting investment in digital assets to be consistent with international development,โ the proposal says.
Balancing Risk and Opportunity
The SEC’s proposed rules seek to create balance, distinguishing between riskier assets like Bitcoin and more stable options, such as Tether. The draft emphasizes fund managers must tread carefully, exercising fiduciary duty while handling these digital investments. Retail mutual funds, for instance, would be limited to allocating 15% of their portfolio to crypto. Meanwhile, institutional and ultra-high-net-worth investors can dive in deeper—no caps, but diversification remains essential to manage risk.
The proposal even includes limits on how long funds can hold digital assets, setting a maximum holding period of five business days. The SEC’s rulemaking shows they want funds to stay nimble while navigating the crypto markets. Public feedback is welcome until November 8, with final rules expected next year.
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