Thailand's Securities and Exchange Commission (SEC) has proposed new reforms to oversee the entrance of private investment funds and mutual funds into the crypto industry. These measures are intended to align with the growing institutional interest in crypto investments elsewhere in the world.

Proposal for New Reforms for Crypto Investors

The regulator released a draft of the proposed regulatory changes to seek public participation, opinions, and feedback. The collected data will be used as a cornerstone for implementing or revising criteria for funds investing in cryptocurrencies. The draft highlights the Thai SEC’s intention to allow asset management firms and registered securities companies to offer crypto investment services through vehicles such as exchange-traded funds (ETFs).

Digital Asset Classification and Limits

The new regulations will classify digital assets such as Bitcoin as high-risk assets compared to less volatile crypto assets like stablecoins with a steady market value. The regulator advised fund managers to proceed with caution when selecting the best investment channels for their clients. Retail mutual funds would have a 15% cap on crypto investments. Larger funds, such as institutional and ultra-high-net-worth investors, will not have restrictions on exposure levels but must manage risk through diversification.

Regulation Revisions and Prospects

The draft also notes that the Thai SEC will revisit regulations on crypto custody, information disclosure, advertising, and value calculation. The body plans to authorize initial coin offering (ICO) portals, which will be allowed to hire outsourced companies for fundraising or designing investment projects. Public participation in the drafted regulations will be open until November 8. The final regulations draft will be presented next year after revisions and additions.

These proposals indicate the Thai SEC's ambition to follow global trends that pave the way for institutional investors in the DeFi industry.