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Thailand’s SEC considers digital asset funds

Thailand’s Securities and Exchange Commission is looking into digital asset funds as mutual funds become more interested in offering crypto to investors.

According to the statement, the Association of Investment Management Companies (AIMC) is in talks with the SEC about allowing asset managers to set up funds that invest in digital assets. The proposal’s goal is to provide a viable alternative to young investors.

AIMC chairwoman Chavinda Hanratanakool commented on the possibility, saying that mutual funds “should have the opportunity to be included in digital asset development in Thailand.”

She said the proposal would permit asset management firms to establish mutual funds that invest directly in digital assets.

The movement come as Thailand’s potential in digital assest is very positive. According to a recent McKenzie report, the digital assets industry in Thailand will grow significantly in 2021 and 2022 as more traditional financial industry players and start-ups enter the market.

Meanwhile, price volatility and regulatory complexities have not slowed the country’s crypto activity.

The AIMC, a group of 21 member companies, anticipates that negotiations with the Thai regulator will result in a resolution at some point in 2019. But it’s important to remember how the Thai SEC has handled cryptocurrencies so far.

The Thai SEC published a notification in March 2022 that forbids authorized operators of digital asset businesses from acting or offering any service in a way that would encourage, support, or promote the use of digital assets as a form of payment for goods and services.

AIMC’s Chair Hanratanakool said that the use of a digital assets investment fund as an alternative is being investigated because it is thought to be a good opportunity for the younger generation and a potential new investment class in Thailand.

He also stated that allowing mutual funds to invest in digital assets will encourage young people to invest more through mutual funds, encourage them to save money, and spark their interest in finding out about new products. Asset management companies have the ability to grow their clientele into new investment sectors.

However, with the belief that cryptocurrencies can affect the stability of the nation’s primary currency and the security of its trading systems, Bank of Thailand continues to be concerned about digital assets

To protect investors and maintain the stability of the financial system, regulations in the world of digital assets have become more stringent. The Thai SEC has also strictly enacted the regulations, prosecuting and fining business owners who violate them.

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