As a seasoned investor with a keen interest in cryptocurrencies and a soft spot for Thailand’s vibrant culture, I find myself both excited and cautiously optimistic about the recent developments in the Thai crypto economy. Having navigated through various market cycles and witnessed the rise and fall of numerous digital assets, I can appreciate the strategic moves being made by Thailand’s Securities and Exchange Commission (SEC).
Thailand’s financial watchdog is considering enabling mutual and private investment funds to purchase cryptocurrencies, which represents their latest move aimed at strengthening Thailand’s digital currency market.
Based on a report by the Bangkok Post, which referenced an October 9th statement from Thailand’s Securities and Exchange Commission, the suggested plan allows investment funds to purchase investment tokens and cryptocurrency exchange-traded funds that are listed on American stock markets.
As an analyst, I’d put it this way: The Deputy Secretary-General of the SEC, Anek Yooyuen, has indicated that “investment tokens” will be categorized akin to traditional securities like stocks and bonds due to their similar levels of risk. This classification would enable securities firms and asset managers to extend crypto investment opportunities to larger investors.
A significant point to note is that retail mutual funds will have a limitation, preventing them from investing more than 15% in cryptocurrencies. On the other hand, institutional and wealthy individual investors won’t be subjected to these constraints.
Later this year, Yooyuen mentioned that the necessary standards would be revised to incorporate funds handling digital assets. He pointed out that these modifications will encompass areas such as “safekeeping of assets” and “disclosure of information.
Additionally, the commission intends to establish distinct rules for digital assets according to their risk levels. For instance, higher-risk assets like Bitcoin will be subject to unique guidelines, whereas stablecoins might adhere to a separate regulatory framework.
The SEC is currently seeking public feedback on the proposal until Nov. 8, 2024.
At the same time, the SEC might allow initial coin offering platforms to delegate certain responsibilities, like fundraising or project development, should they not have these abilities internally. However, it’s important to note that a public hearing will take place prior to any implementation of such changes.
At the same time as these new possibilities arise, the Securities and Exchange Commission (SEC) is becoming stricter with its regulations. They are imposing harsher punishments for infractions such as “naked short selling” and market manipulation.
The proposed fines for securities firms making incorrect trades may increase from 1 million baht to a potential 3 million baht. For particularly serious infractions, these companies could even risk losing their operating licenses.
Thailand’s pro-crypto moves
In Thailand, regulatory bodies are making efforts to create a welcoming atmosphere for cryptocurrencies within the country. This year, the Thai government has granted an exemption from taxes on crypto income, aiming to provide Thailand with a distinct advantage in the international market.
In August, the Securities and Exchange Commission (SEC) initiated a Digital Asset Regulatory Sandbox, enabling ten selected private companies to experiment with digital token and cryptocurrency transactions in exchange for Thai Baht. This move is paving the way for cryptocurrencies to be utilized as a payment method.
By October 2024, cryptocurrency transactions remain forbidden according to the Bank of Thailand. However, the Securities and Exchange Commission (SEC) intends to hold more discussions with the central bank regarding this issue before making any moves towards implementation.
Thailand, like many other countries, has regulations against unauthorized cryptocurrency trading. The regulatory body is taking steps to bar unlicensed platforms in order to protect local residents from using such services.
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2024-10-10 13:23