1 month ago
12 ARTICLE AD
The Thai Securities and Exchange Commission (SEC) introduced new regulations allowing private and mutual funds to invest in digital assets, including overseas crypto ETFs.
Key Notes
The Thai SEC is public feedback to revise investment criteria for mutual funds to gain crypto exposure.Wealthy investors will have greater flexibility, as funds targeting them will have no cap on crypto investments.The SEC emphasized that fund managers must exercise fiduciary duty in selecting investment channels and managing risks.On Wednesday, the Thai Securities and Exchange Commission (SEC) introduced new regulations that would allow private funds and mutual funds to invest in crypto assets. This development comes amid the emerging global crypto markets and the rising institutional interest in crypto ETFs worldwide.
The draft proposal from the Thai SEC shows that the regulator is seeking public feedback and the revision of criteria for mutual funds to invest in digital assets. Besides, the regulator is giving asset management firms the go-ahead to offer their clients and big investors to invest in crypto-related products. This includes investing in crypto exchange-traded funds (ETFs) listed on overseas markets such as the US stock exchange.
Speaking to the Bangko Post, Thai SEC deputy secretary-general Anek Yooyuen stated that the investment tokens would be added in the same ratio as other transferable securities such as stocks and bonds since they have similar risks and characteristics.
Furthermore, the funds aimed at wealthy investors will get greater flexibility for investments in digital assets without any upper cap on investments.
“Relevant criteria will be revised to support the establishment and management of funds investing in digital assets, such as asset custody, digital asset value calculation, information disclosure, and appropriate advertising,” said Mr Anek.
SEC Revamping Current Rules to Accommodate Crypto Investments
The Thai SEC noted that the current framework and rules for mutual funds have been in place since 2015 and need a major revamp. The new rules will keep up with the digital asset investment changes happening overseas while giving investors exposure to global crypto ETFs. Apart from the Thai regulator, Taiwan is also opening the gates for investments into foreign crypto ETFs.
“The SEC Office sees fit to adjust the criteria for accepting investment in digital assets to be consistent with international development,” reads the translation of the proposal.
The proposed rules would differentiate between high-risk assets such as Bitcoins BTC $61 040 24h volatility: 1.7% Market cap: $1.21 T Vol. 24h: $26.42 B , stablecoins like USDT USDT $1.00 24h volatility: 0.0% Market cap: $119.74 B Vol. 24h: $38.29 B , etc. Additionally, the Thai SEC has emphasized that fund managers should exercise “fiduciary duty in selecting appropriate investment channels” while simultaneously managing the associated risks.
The draft proposes limits on digital asset exposure for different fund types. Retail mutual funds would be limited to a 15% allocation in crypto investments, while institutional and ultra-high-net-worth investor funds would have no cap but must diversify to manage risk.
Additionally, the SEC’s proposal sets guidelines for the temporary holding of assets like Bitcoin or Ethereum ETH $2 395 24h volatility: 1.6% Market cap: $288.23 B Vol. 24h: $14.44 B , limiting the holding period to five business days for trading purposes. “Funds may need to hold crypto assets to buy, sell, or exchange digital assets,” the SEC stated.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
