Thailand SEC Proposes Crypto Investment for Private Funds
Thailand's SEC proposes new rules for private funds to invest in Bitcoin and crypto, enhancing the digital asset landscape while ensuring investor protection.
Highlights:
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New regulations allow private funds to invest in Bitcoin.
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Retail mutual funds can invest up to 15% in cryptocurrencies.
Thailand's Securities and Exchange Commission (SEC) has unveiled a groundbreaking proposal that could significantly reshape the country's investment landscape. Announced on October 9, 2024, the SEC aims to permit mutual and private funds to invest in cryptocurrency products, including investment tokens and crypto exchange-traded funds (ETFs) listed on U.S. stock exchanges.
Under the new regulations, retail mutual funds will be limited to a maximum crypto exposure of 15%, while institutional and high-net-worth investors will face no such restrictions. This initiative is designed to enhance Thailand's crypto economy and provide a structured framework for investment in digital assets.
SEC deputy secretary-general Anek Yooyuen emphasized that investment tokens will be treated similarly to traditional securities, acknowledging their comparable risks. The commission plans to update criteria related to asset custody and information disclosure later this year.
Additionally, the SEC is seeking public feedback on this proposal until November 8, 2024. As part of its broader strategy, the SEC is also considering allowing initial coin offering portals to outsource certain tasks, enhancing their operational capabilities.
While these developments signal a more crypto-friendly regulatory environment, the SEC is simultaneously tightening rules against market manipulation and improper trading practices, with increased penalties for violations. This dual approach aims to foster innovation while ensuring investor protection in Thailand's evolving digital asset landscape.
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