Thailand Regulator to Allow Mutual Funds to Invest in Bitcoin

The Securities regulatory body of Thailand has planned to allow mutual funds and similar firms to invest in Bitcoin and cryptocurrencies.

On 9 Oct 2024, the Thai Securities and Exchange Commission (SEC) published a draft seeking public feedback on revisions to the criteria for funds investing in cryptocurrencies.

The Thai SEC proposed the idea of allowing securities offering firms and fund management companies to provide services to large investors interested in diversifying into crypto-related products, such as exchange-traded funds (ETFs). The regulator aims to keep pace with international developments in cryptocurrencies and create more opportunities for investors to diversify their portfolios.

If this proposal passes, it would greenlight asset management and mutual fund services to invest in crypto-related ETFs

New rules also aim to establish guidelines for investment firms and managers to limit risks, given the volatility and challenges associated with cryptocurrencies.

It is worth noting that Thai investors already have access to foreign-based crypto spot ETF products under the current framework for mutual funds, which has been in place since 2015.

Thai & crypto adoption

Over the past several years, Thailand’s population and government authorities have shown significant inclination towards the crypto space. The country’s growing interest in cryptocurrencies is driven by the government actively working on regulations to support the digital asset industry. In the past, the country’s Securities and Exchange Commission (SEC) introduced guidelines for crypto exchanges and initial coin offerings (ICOs), fostering a regulated environment for blockchain and cryptocurrency development.

Thailand’s central bank is also exploring a central bank digital currency (CBDC) for domestic use, reflecting the country’s proactive stance in integrating Bitcoin and the crypto sector into its financial ecosystem.Read also:

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