Thailand’s SEC eyes digital asset investment funds
Thailand’s Securities and Exchange Commission is keenly eyeing digital asset funds as mutual funds become keen on offering crypto investors. The Bangkok Post reported that the Association of Investment Management Companies (AIMC) is in talks with the SEC over plans to allow asset managers to create funds that invest in digital assets. The idea behind the proposal is to provide an alternative to young investors.
Commenting on this prospect, AIMC President Chavinda Hanratanakool said that mutual funds “should have the opportunity to be included in the development of digital assets in Thailand”. Under the proposal, asset management companies would be allowed to create mutual funds that invest directly in digital assets.
Data from a recent McKenzie report revealed that in 2021 and 2022, the digital asset industry in Thailand has grown significantly as more big players in the traditional financial sector and start-ups are entered the digital asset market.
Price volatility and regulatory complexities have not slowed the rise of crypto business in the country.
The AIMC, a collection of 21 member companies, expects talks with the Thai regulator to conclude with a resolution sometime next year. However, it is important to keep in mind the Thai SEC’s approach to crypto so far.
In March 2022, the Thai SEC issued a notice prohibiting licensed digital asset trading operators from acting or providing any service in a manner that promotes, supports or encourages the use of digital assets as payment for goods. and services.
Sees as an alternative for young investors
Digital asset investment fund as an alternative is being explored as it is seen as a good opportunity for the younger generation, while digital assets as a new class of investment may emerge in Thailand, said the AIMC President.
“Enabling mutual funds to invest in digital assets will in turn help young people to invest more through mutual funds and spark interest in saving money and learning about new products, Hanratanakool said, “Asset management firms can expand their client base into new investment areas.”
on the reverse
- The Bank of Thailand continues to be concerned about digital assets, with the idea that cryptocurrencies can affect the stability of the country’s main currency and the security of its trading systems.
- Regulations in the digital asset landscape have tightened to ensure investor protection and monetary system stability. The Thai SEC has also strictly enforced the rules by prosecuting and fining non-compliant trading operators.
Why You Should Care
Consumer spending in many countries has been converted into digital assets. Although digital asset management is a relatively new concept, it is gaining ground. Regulators in many countries can follow suit and adjust regulations to reflect industry trends.
Find out how the Thai SEC has been proactive on crypto –
Thailand tightens regulations on crypto ads
Learn more about the SEC’s handling of non-compliance –
Thai SEC Files Police Complaint Against Crypto Exchange Zipmex for Non-Compliance