The proposal by Thailand’s Securities and Exchange Commission (SEC) plans to allow funds to invest in U.S.-listed investment tokens and crypto exchange-traded funds (ETFs), the Bangkok Post reported, citing an Oct. 9 announcement. Contains.

Anek Yooyuen, deputy secretary general of the SEC, stated that “investment tokens” have similar risks to securities such as stocks and bonds, and that they aim to allow securities firms and asset managers to offer crypto products to large investors.

One key regulation stipulates that retail mutual funds’ exposure to crypto will be limited to 15%, while institutional and high-net-worth investors will be exempt from such restrictions.

Yooyuen emphasized that the relevant criteria will be updated this year to ensure the operation of funds related to digital assets, and that these changes will include elements such as “asset storage” and “information disclosure”.

He also added that the commission plans to apply different rules depending on the risk level of digital assets. High-risk assets, such as Bitcoin, will be subject to certain guidelines, while stablecoins may be subject to a different set of regulations.

The SEC is seeking public feedback on the proposal by November 8, 2024.

At the same time, the SEC is reportedly also considering allowing the initial coin offering portal to outsource some tasks, such as fundraising or project design, if they do not have sufficient internal resources. However, it has been stated that there will be a public hearing before this is implemented.

However, with these new opportunities, the SEC is tightening the rules, introducing harsher penalties for violations such as “naked short selling” and market manipulation.

The penalty for improper trading orders by securities firms is expected to increase from 1 million baht to 3 million baht. Companies found guilty of serious crimes may also have their licenses revoked.

Regulators in Thailand are taking steps to create a more crypto-friendly environment in the country. Earlier this year, the Thai cabinet approved tax exemptions for crypto earnings to provide a competitive advantage internationally.

A few months later, in August, the SEC launched a Digital Asset Regulatory Sandbox that allowed ten private firms to experiment with exchanging digital tokens and cryptocurrencies for Thai baht, laying the foundations for the use of cryptocurrencies as a payment method.

As of October 2024, while crypto payments are still banned by the Bank of Thailand, the SEC reportedly plans to further discuss the issue with the central bank before taking any action.

Thailand also prohibits unauthorized crypto trading, and the commission has taken steps to block unlicensed platforms to prevent locals from accessing services.