Thailand’s high-net-worth investors could soon gain greater access to crypto funds than retail investors, thanks to proposed changes from the Securities and Exchange Commission (SEC).
On October 9, the SEC announced plans to allow mutual and private funds to invest in crypto products, reflecting increasing interest from institutional investors. The proposal suggests that funds will be able to invest more in crypto exchange-traded funds (ETFs) listed on U.S. stock exchanges.
Securities companies and asset management firms would be authorized to offer crypto-related products specifically to large investors. According to SEC deputy secretary-general Anek Yooyuen, “investment tokens” will be treated similarly to stocks and bonds in terms of investment ratios due to their comparable characteristics and risks.
The SEC’s proposal outlines different rules for various types of digital assets, with high-risk assets like Bitcoin being handled differently from stablecoins. Retail mutual funds would be limited to a 15% allocation in crypto investments, while institutional and high-net-worth investors would face no cap on their exposure.
In addition, the SEC plans to revise criteria for managing funds that invest in crypto assets, focusing on areas such as asset custody, value calculation, information disclosure, and advertising. It also aims to authorize initial coin offering (ICO) portals to facilitate token fundraising through outsourced companies.
However, the regulator intends to increase fines for practices such as naked short-selling, inappropriate trading orders, and market manipulation. Earlier this year, the SEC took action against unlicensed crypto exchanges operating in the country.
Furthermore, the SEC is preparing a Digital Asset Regulatory Sandbox that will allow ten private firms to conduct trial projects for exchanging crypto assets for local currency. This move could pave the way for crypto payments in Thailand, a practice currently banned by the central bank. The SEC will need to consult with the Bank of Thailand to explore the use of crypto as a payment method.
Despite regulatory changes, retail crypto trading remains robust in Thailand, with the country’s largest crypto exchange, Bitkub, reporting nearly $30 million in daily trading volume, according to CoinGecko.
