The Thailand Securities and Exchange Commission (SEC) has proposed changes that could expand investment options for funds, allowing investment in digital assets.

Aligning with Global Trends

The Thai SEC’s proposal reflects the growing international interest in cryptocurrencies, particularly after the approval of Bitcoin and Ethereum ETFs in the U.S. While Thai investors have already had access to these abroad, domestic funds were limited in direct investment capabilities. The SEC aims to modernize regulations to enable fund managers to incorporate crypto products into portfolios.

New Opportunities for Companies and Managers

Under the new rules, securities companies and asset management firms would offer services to investors interested in crypto products like ETFs. Retail funds face a proposed 15% cap on digital asset exposure to minimize risks, while institutional investor funds have more flexibility and no such cap but need portfolio diversification.

Differentiating Risky and Stable Assets

The SEC's draft introduces guidelines to differentiate types of digital assets. High-risk assets like Bitcoin will be treated differently compared to stablecoins like Tether. SEC proposes limits on the temporary holding of assets to five business days, aiming to manage market risks.

The Thai SEC's proposal is a significant step in developing the local cryptocurrency market, showing the country's commitment to aligning with international standards.