Since 2015, the existing investment rules for mutual funds and private funds in Thailand have never mentioned about digital assets (“DAs”). Due to the growing interest in DAs as one of alternative investment options, the Office of Securities and Exchange Commission (“SEC”) is conducting a public hearing on the amendment to several rules for mutual funds and private funds investing in DAs to align with global practices and enhance the flexibility for Thai investors to diversify portfolios.
The proposed changes focus on eligibility, risk management, and investor protection, the main contents include the following:
- The coverage of mutual funds and private funds investment in DAs, specifically, investment tokens and cryptocurrencies.
- The investments of mutual funds and private funds in DAs are classified and based on risk tolerance of the investor and the risk profile of the DA.
- The criteria and conditions to protect investors, such as the custody and security standards of the assets, the disclosure requirements, advertising and suitability assessments.
The public hearing ended on 8 November 2024, the proposed amended rules are expected to be enforced in the future.