Thailand’s Securities and Exchange Commission (SEC) has proposed new guidelines that would allow mutual and private funds to invest in cryptocurrency products, signalling a pivotal shift in the country’s investment landscape. This move predominantly benefits high-net-worth investors, expanding their investment avenues while maintaining regulatory oversight.
High-Net-Worth Investors Set to Benefit from New Crypto Guidelines
The regulator said funds will be allowed to invest more in crypto exchange-traded funds traded and listed on US stock exchanges, as well as investment tokens, which have attracted the interest of Thai investors.
Investment tokens will be added with the same investment ratios as transferable securities such as stocks and bonds because they have similar characteristics and risks, said SEC deputy secretary-general Anek Yooyuen.
It is already known that there will be a difference between the type of organization, namely restrictions with retail mutual funds limited to a 15% allocation in crypto investments, while institutional and high-net-worth investors would have no cap on exposure.
ICOs are expected to be sanctioned so that funds can use outsourcing companies to raise funds for tokens or develop investment projects, again subject to regulation.
High-net-worth investors, traditionally limited in their investment choices, may soon find themselves at an advantage. The guidelines intend to provide these investors with a structured and regulated framework to engage with cryptocurrencies, potentially leading to enhanced portfolio diversification and risk management strategies.
However, the SEC’s cautious approach reflects its recognition of the inherent risks associated with digital assets. The regulatory body has emphasized that any fund looking to invest in crypto products will need to adhere to stringent guidelines and demonstrate robust risk assessment measures.
In addition, funds aimed at wealthy investors will be given greater flexibility for investment in cryptocurrencies without any investment limits, said SEC deputy secretary-general Anek Yooyuen.
“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.
The SEC’s proposal may signal the beginning of a broader acceptance of cryptocurrencies in traditional investment mechanisms, positioning the country as a leader in crypto regulation in Southeast Asia.
