Thailand SEC’s Major Move: Cryptocurrencies Enter Institutional Funds!

Thailand Securities and Exchange Commission (SEC) is preparing to take significant steps to expand investment opportunities in the cryptocurrency markets.

With a new regulatory proposal announced on October 9, 2024, institutional investors will gain broader access to crypto products through investment funds and private funds. This move is seen as a major step toward crypto investments in Thailand, particularly enabling investments in crypto exchange-traded funds (ETFs) listed on U.S. exchanges.

The regulation proposed by the Thailand SEC is expected to further increase interest in the cryptocurrency markets. The new rules will allow asset management firms and securities companies to offer more crypto-related investment products to large investors. Additionally, a new asset class called “investment tokens,” which shares similar investment characteristics with securities and bonds, will be considered. The SEC’s Deputy Secretary-General Anek Yooyuen noted that these tokens “have similar features and risks.”

While crypto investments for retail investors will be limited to a 15% cap, there will be no such restrictions for institutional and high-net-worth investors. This allows larger investors to enter the crypto market more freely, while ensuring that risks for retail investors remain controlled.

It has also been reported that the SEC plans to establish a Digital Asset Regulatory Sandbox with the participation of ten firms conducting pilot projects for the exchange of crypto assets with local currency. These projects raise the possibility of a review of the existing crypto payment ban by the Bank of Thailand.