The Thai Securities and Exchange Commission (SEC) has proposed new rules allowing mutual and private funds to invest in digital assets. The goal is to match global trends and meet growing interest from institutional investors.
A draft proposal was published, seeking public feedback on the updated investment criteria for digital assets.
The SEC plans to let securities firms and asset managers offer services to large investors. This includes allowing investors to diversify their portfolios into crypto products like exchange-traded funds (ETFs). The changes aim to align with international developments and offer more options for expert-managed investments.
See Related: Thailand Tightens Crypto Rules In The Wake Of The FTX Collapse And Market Volatility
Growing Demand For Bitcoin ETFs
The proposal follows the rising global demand for Bitcoin and Ethereum ETFs, which launched in the U.S. this year. The SEC noted that while Thai investors could access these ETFs abroad, local rules have lagged. The current framework for mutual funds, introduced in 2015, needs to be updated.
The new rules would limit retail mutual funds to a 15% allocation in crypto investments. Funds for institutional and high-net-worth investors would have no cap but must diversify to manage risks. Fund managers will need to follow strict guidelines when temporarily holding digital assets like Bitcoin or Ethereum. These assets can only be held for five business days for trading purposes.
The SEC will accept public feedback on the proposal until November 8. Final rules are expected to be issued next year.
