The Securities and Exchange Commission of Thailand is thinking heavily of digital asset funds as mutual funds have become eager to offer cryptocurrency to investors. The Bangkok Post reports that the Association of Investment Management Companies (AIMC) is in talks with the Securities and Exchange Commission about plans to allow asset managers to create funds that invest in digital assets. The idea behind the proposal is to provide an alternative for young investors.
Commenting on the possibility, AIMC President Shavinda Hanrattanakul said mutual funds “should have the opportunity to be included in the development of digital assets in Thailand.” According to the proposal, asset management companies will be allowed to set up 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 industry and novice players enter the digital asset market.
Price volatility and regulatory complexities have not slowed the rise of crypto activities in the country.
AIMC, a group of 21 member firms, expects discussions with the Thai regulator to conclude with a decision sometime next year. However, it is important to keep in mind the Thai SEC’s approach to cryptocurrencies so far.
In March 2022, the Securities and Exchange Commission of Thailand issued a notice prohibiting licensed digital asset business operators from acting or providing any service in a manner that would promote, support or encourage the use of digital assets as a means of payment for goods and services.
It is an alternative for young investors
A digital asset investment fund is being explored as an alternative as it is seen as a good opportunity for the younger generation, while digital assets as a new investment category can start in Thailand, says AIMC head.
“Allowing mutual funds to invest in digital assets will in turn help young people to invest more through mutual funds and create an interest in saving money and learning about new products,” said Hanrattanakul. “Asset management companies can expand their client bases in new investment areas.”
on the flip side
- The Bank of Thailand still has concerns about digital assets, with the view that cryptocurrencies could affect the stability of the country’s main currency and the security of its trading systems.
- Regulations in the digital asset landscape have been tightened to ensure investor protection and the stability of the monetary system. The SEC has also strictly enforced the rules by prosecuting and fining non-compliant business operators.
Why should you care
Consumer spending in many countries has been converted into digital assets. Although digital asset management is a relatively new concept, it is gaining momentum. Regulators in many countries may follow suit and adjust regulations to reflect trends in the sector.
Read about how Thai SEC is proactive when it comes to coding –
Thailand tightens regulations on crypto ads
Read about SEC dealing with non-compliance –
Securities Commission of Thailand files complaint against crypto exchange Zipmex for non-compliance