Securities and Exchange Commission move will allow funds to invest more in crypto

The Securities and Exchange Commission (SEC) is preparing to adjust the investment criteria later this year to allow mutual funds and private funds to invest more in digital assets, as interest grows in cryptocurrency investment.
The regulator said funds will be allowed to invest more in crypto exchange-traded funds traded and listed on US stock exchanges, as well as investment tokens, which have attracted the interest of Thai investors.
Investment tokens will be added with the same investment ratios as transferable securities such as stocks and bonds because they have similar characteristics and risks, said SEC deputy secretary-general Anek Yooyuen.
In addition, funds aimed at wealthy investors will be given greater flexibility for investment in cryptocurrencies without any investment limits, he said.
“Relevant criteria will be revised to support the establishment and management of funds investing in digital assets, such as asset custody, digital asset value calculation, information disclosure and appropriate advertising,” said Mr Anek.
The SEC is also preparing to allow authorised initial coin offering portals to use outsourced companies in cases where a company does not have adequate personnel for token fundraising, or to design investment projects.
This measure was endorsed by the SEC and a public hearing is needed before it can be implemented, he said.
The regulator is also preparing to allow 10 private firms to conduct trial projects for exchanging digital tokens or cryptocurrency for baht in the digital asset regulatory sandbox project.
The SEC did not release the names of the firms taking part in the trial.
This project will allow cryptocurrency to be used as a means of payment, which is prohibited by the Bank of Thailand. The SEC needs to hold discussions with the central bank and seek its approval prior to implementation, said Mr Anek.
The regulator is also considering increasing penalties for firms and individuals violating SEC laws, especially naked short selling, which it considers to be a severe offence, aiming to increase confidence in the capital market following recent cases of fraud.
For securities firms that send inappropriate trading orders, the SEC will increase the maximum fine from 1 million to 3 million baht, while investors who manipulate stocks are subject to both civil and criminal penalties.
Securities firms committing serious offences may have their licences revoked, in accordance with the law.
The increased penalties are expected to be announced and enforced soon, he said.