Thailand’s Securities and Exchange Commission (SEC) is preparing to expand investment opportunities in digital assets for mutual and private funds. The move aims to meet the rising demand for cryptocurrencies, particularly from institutional and high-net-worth investors.
Under the proposed changes, funds will be allowed to invest more in crypto exchange-traded funds (ETFs) listed on U.S. stock exchanges. Additionally, investment tokens—which share risks and characteristics with traditional securities—will be included in investment portfolios.
Increased Flexibility for Wealthy Investors
For wealthy investors, there will be no cap on crypto investments, while retail mutual funds will face a 15% limit. The SEC is also working on revising regulations related to fund management, including asset custody, value calculation, and advertising.
In a further step, the SEC will permit companies to outsource token fundraising and project design for initial coin offerings (ICOs). A public hearing will precede the final approval of these changes.
Stricter Penalties for Market Misconduct
To support cryptocurrency adoption, the SEC plans to launch a regulatory sandbox where private firms can trial crypto-to-baht exchanges. This could eventually lead to legal crypto payments, pending approval from the Bank of Thailand.
At the same time, the SEC is tightening penalties for market violations, with fines for improper trading orders increasing from 1 million to 3 million baht. Stock manipulation and other severe offenses may result in license revocation.
These changes reflect global trends in countries like the U.S. and Singapore , where regulators are adjusting crypto rules to balance investor protection with the growing interest in digital assets.