• Thailand’s SEC to consider the permission of private funds investing in Bitcoin and other cryptocurrencies – an unprecedented development in the country.
  • Such a step may produce new demand in the crypto economy making it more liquid and stable with the help of institutional investors.
  • This places Thailand in this general perspective of other Asian countries in terms of growth towards embracing digital assets’ regulation.

The Thailand Security and Exchange Commission (SEC) Thailand has now proposed some new regulations by which private funds can invest in bitcoin and other cryptocurrencies. This is quite a reversal of the country’s position on such digital currency investment, and may see even more participation in the rapidly growing crypto space. The proposal has been made at the right time that the Asian financial market has backed off slightly on the implementation of blockchain technology and digital currencies in their process.

JUST IN: 🇹🇭 Thai SEC proposed new regulations to allow private funds to buy #Bitocin and crypto.

Asia is ready 🚀 pic.twitter.com/CHspy1o1D9

— Bitcoin Magazine (@BitcoinMagazine) October 10, 2024

A Move Toward Institutional Investment

The drafted regulation from the Thai SEC would allow hedge funds, institutional investors etc to invest in cryptocurrencies such as Bitcoin by opening certain percentages of their funds to such a section. This could be a major reason as it may attract institutional capital into the digital assets markets. 

Deposits from the private sector were always restricted when it comes to investing in cryptocurrencies because of the ambiguous legal framework. These new regulations, if approved, would provide a much needed legal framework and institutional investors would be more comfortable to venture into the space.

Potential Impact on the Market and Regional Trends

Allowing private funds to invest in cryptocurrencies could significantly boost market liquidity and legitimacy. Opening the door for private funds to invest in cryptocurrencies might help increase the liquidity and popularity of the market by many times. This makes us conclude that adoption of institutional traders in Thailand’s cryptocurrencies market could lead to high trading and volatile value of digital assets such as Bitcoin. 

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Besides, the shift may help bring more foreign investment, as Thailand seeks to become an epicenter of virtual currencies’ development and trading in the Asia-Pacific region. Considering the fact that actions and fluctuations in the market of cryptos are traditionally high, the entry of institutional investors can also bring positive results such as stabilization of highly fluctuating pricing.

Thailand is gradually changing its policy on the regulation of digital assets as more and more Asian countries adopt cryptocurrencies, and governments, and other regulatory authorities of Asian countries such as Singapore and South Korea adopt legislation to support cryptocurrencies. Thai SEC’s proposal to open up private funds to invest in Bitcoin and gain exposure to cryptocurrencies could lead to more institutions entering the digital asset space, putting Thailand in the trend seen across the rest of southeast Asia.

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