Thailand’s SEC Proposes New Regulations to Boost Institutional Crypto Investments

Thailand's Securities and Exchange Commission (SEC) is proposing new regulations to allow mutual and private funds to invest in cryptocurrency products, addressing growing institutional interest.

The October 9 proposal permits these funds to invest in U.S.-listed crypto exchange-traded funds (ETFs) and introduces “investment tokens” similar to stocks and bonds.

Key aspects include a 15% allocation limit for retail mutual funds in crypto, while institutional and high-net-worth investors would face no caps.

The SEC will also revise criteria for managing crypto funds and plans to allow ICO portals to collaborate with third-party firms for fundraising.

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To enhance market oversight, penalties for practices like naked short-selling will increase.

The SEC is also launching a Digital Asset Regulatory Sandbox for ten firms to test crypto-to-local currency exchanges, potentially paving the way for cryptocurrency payments, which are currently banned.

Despite regulatory challenges, retail crypto trading remains strong, with Bitkub, the largest exchange, reporting nearly $30 million in daily volume.

Kosta Gushterov