Thai SEC proposes updated rules for crypto investment in funds

The Thai Securities and Exchange Commission (SEC) has introduced a draft proposal aimed at revising regulations for mutual and private funds to invest in digital assets, reflecting global changes in crypto investing. 

The proposal, released on October 10, seeks public feedback on the updated criteria, with a focus on accommodating growing institutional interest in crypto-related products.

The SEC’s new rules would allow securities companies and asset management firms to offer services to large investors seeking diversification into digital assets, such as exchange-traded funds (ETFs). 

The move is intended to align Thailand’s regulations with international trends and provide more opportunities for investors to expand their portfolios under expert management.

This follows a surge in interest in Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) ETFs, which were approved for trading in the U.S. earlier this year. 

While Thai investors can already access crypto ETFs abroad, the SEC noted that current domestic regulations, in place since 2015, have not kept up with recent developments in digital asset investing.

The proposal includes guidelines for fund managers to maintain their fiduciary duty in selecting appropriate investment channels and managing risks. 

It also differentiates between high-risk assets like Bitcoin and more stable options, such as stablecoins like Tether.

Retail mutual funds would be limited to a 15% allocation in crypto investments, while institutional and ultra-high-net-worth investors would have no cap on exposure but must diversify to mitigate risk. 

Additionally, the proposal outlines a five-business-day cap on holding periods for assets such as Bitcoin or Ethereum for trading purposes.

Public comments on the draft will be accepted until November 8, with the final regulations expected to be implemented next year.