The Securities and Exchange Commission of Thailand (SEC) proposes new regulations to allow investment in digital assets by mutual funds and private funds to keep pace with international developments and address growing interest from institutional investors. did.
A draft proposal published on Wednesday seeks public comment on revised standards for funds investing in digital assets.
The SEC is proposing to allow brokerage firms and asset management companies to offer services to large investors interested in diversifying their investments in crypto-related products such as exchange-traded funds. The regulator said it aims to keep pace with international developments in digital assets and increase opportunities for investors to diversify their portfolios under professional management.
This follows a surge in international interest and demand for the US-listed Bitcoin and Ethereum ETFs, which were given the green light for trading in January and May, respectively.
The regulator noted that while Thai investors already have access to overseas crypto ETFs, the current mutual fund framework, which has been in place since 2015, has not kept pace with changes in digital asset investing overseas.
A rough translation of the proposal reads: “The SEC Office believes it is appropriate to adjust the standards for accepting investments in digital assets to be consistent with international developments.”
The proposed rules would distinguish between high-risk assets such as Bitcoin and stablecoins such as Tether, which are designed to maintain a stable value.
Thailand’s SEC also emphasized the need for fund managers to exercise their “fiduciary responsibility to select appropriate investment channels” and manage related risks.
The draft outlines limits on digital asset exposure for different types of funds. Mutual funds for individuals are limited to a 15% allocation to crypto investments, while more sophisticated funds for institutional investors and ultra-high-net-worth individuals have no exposure caps but are diversified to manage risk. need to.
The SEC’s proposal also includes guidelines for temporary holding of assets such as Bitcoin and Ethereum, with holding periods for trading purposes limited to five business days. “Funds may be required to hold crypto assets in order to buy, sell, or exchange digital assets,” the SEC said.
Public comments on the proposal will be accepted until Nov. 8, with final regulations expected next year.
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