Thai SEC Offers Private and Mutual Fund Crypto Investments
The Thai securities authority aims to allow mutual funds and private entities to trade cryptocurrencies to expand the sector.
According to a recent Bangkok Post report, this measure is part of a larger push to boost the country’s crypto economy.
On October 9, the Thai Securities and Exchange Commission (SEC) proposed allowing funds to invest in US-listed cryptocurrency ETFs and investment tokens. This might lead to more digital asset-related financial solutions.
“The funds that are offered to institutional and ultra-high-net-worth investors who have a high risk tolerance will be permitted to invest in cryptocurrency exchange-traded funds (ETFs) with no investment limit,” the release says. Also, the announcement said that “investment tokens come with key risks and characteristics that are comparable to those of traditional securities, such as debt securities.” The funds may invest in investment tokens as long as they follow traditional securities’ single entity, group, and concentration limits.
Investment tokens will be treated like stocks and bonds, according to SEC deputy secretary-general Anek Yooyuen. Asset managers and securities businesses may now offer cryptocurrency solutions to large investors. However, regular mutual funds would have a 15% cryptocurrency exposure limit, but institutional and high-net-worth investors would not.
The Securities and Exchange Commission (SEC) wants to adjust asset custody and information disclosure requirements to accommodate digital asset funds. Yooyuen highlighted that these changes will happen later this year.
The commission will also create several regulatory frameworks based on digital asset risk. High-risk assets like Bitcoin and Ethereum will be regulated more strictly than stablecoins.
The SEC is accepting public comments on the proposal until November 8, 2024. The commission is also considering letting initial coin offering (ICO) websites outsource fundraising and project design. A public hearing will precede any such modifications.
SEC oversight is expanding as these efforts provide new opportunities. The group believes naked short selling and market manipulation will be punished more harshly. Securities firms may face a three-million-baht penalties for improper trading recommendations. Companies with major offenses may lose their licenses.
Thailand is working hard to embrace cryptocurrencies. The government exempted bitcoin transaction income from taxes earlier this year to boost competitiveness.
August saw the SEC create a Digital Asset Regulatory Sandbox. This sandbox allowed 10 private companies to test digital token and cryptocurrency exchanges for Thai baht. This paved the way for cryptocurrency payments.
According to Chainalysis’ “2023 Global Cryptocurrency Adoption Index,” Thailand ranks ninth in civilian cryptocurrency adoption. According to the Global 2022 Digital Overview Report, Thailand has one of the highest cryptocurrency ownership rates among internet users.
According to Statista.com, 13.02 million Thais used cryptocurrency on January 11, 2024. Approximately 18.1% of the nation’s population. By 2028, 17.67 million users are predicted after 10 years of constant growth.
Despite the Bank of Thailand’s restrictions on cryptocurrency payments, the SEC is anticipated to talk to the central bank further. Unlicensed platforms are being shut down by the government to protect Thai investors from unlicensed cryptocurrency enterprises.
VanEck has a $30 million AI, cryptocurrency, and fintech fund
VanEck Ventures, a $30 million early-stage fund, was launched by the global investment management firm. Creative entrepreneurs at the intersection of fintech, digital assets, and AI are the fund’s main focus. VanEck’s strategic entry into venture finance builds on its long history of spotting and backing disruptive industries.
In 1968, we pioneered gold investment, and in 2017, we saw Bitcoin’s revolutionary potential. Since then, our investing approach has embraced a long-term view on economic revolutionisers. According to VanEck CEO Jan van Eck, “This fund extends that vision into the early-stage venture space where it can be realized.” “We are excited to provide support to the founders of what we consider to be some of the most innovative companies in the financial technology industry—companies that are constructing the future of finance.”
VanEck Ventures invests in category-defining entrepreneurs employing blockchain and large language models to advance financial applications and markets. The fund invests in excellent teams innovating at the application layer while being infrastructure-agnostic. The fund invests in tokenized assets, internet-native financial marketplaces, and next-generation payment systems based on stablecoins and tokenized capital markets.
The fund is managed by experience fintech and cryptocurrency investors Wyatt Lonergan and Juan Lopez. Lonergan and Lopez ran Circle Ventures, USDC-issuer Circle’s venture capital section. They invested over $50 million in early-stage firms, including consumer applications and infrastructure. VanEck Ventures is a useful partner for innovative startups because to their leadership and reputation in the asset management business. The fund receives operational and advisory support from VanEck’s worldwide staff and senior leadership.
The internet is changing due to three inflection points crucial to our investing thesis. These inflection points include stablecoins as an open-source financial layer, blockspace commoditization, and AI advancement. “We are excited to back founders building on these innovations,” said VanEck Ventures General Partner Wyatt Lonergan. “The convergence of these is creating opportunities for globally connected, user-centric financial experiences that have never been seen before.”
At least 35 investments with check sizes from $500,000 to $1,000,000 are expected by the fund, with a focus on strategic and financial firms. The fund has made four investments, three of which are under wraps.
“Over the past few years, stablecoins have enabled seamless, large-scale value storage and transfer with Linux-like composability,” said VanEck Ventures General Partner Juan Lopez. With increased regulatory certainty, on-chain utilities focused on programmability and compliance are coming to market, making construction more fascinating than ever. We want a long-term cooperation with brave entrepreneurs who are shaping blockchain’s future.
Celebrities shouldn’t provide bitcoin financial advise
Ben Zhou, creator and CEO of bitcoin derivatives platform Bybit, feels content producers are crucial to the cryptocurrency ecosystem. Crypto content creators can reach billions of uninformed or skeptical cryptocurrency users. Additionally, this helps novice investors and traders avoid big losses.
In his remarks to Bitcoin.com News, Zhou acknowledged that bitcoin content authors have limits that limit their ability to help followers. The difficulties range from rapid business developments that may overwhelm even well-versed artists with knowledge to their incapacity to sustainably monetize creativity. The founder of Bybit said such challenges threaten their efforts, making adoption harder.
Zhou cautioned against giving direct financial advice in light of celebrities promoting companies or tokens. Instead, Bybit’s CEO advised influencers to educate their followers on bitcoin trading’s pros and cons. Zhou notes that celebrities may be wary of working with bitcoin exchanges, even if they may be ideal partners for content creators. Zhou believes celebrities would benefit more from such collaboration if the industry becomes more regulated.
Let’s examine the existing situation before discussing why content and content providers are so important in the bitcoin market. Due to their ignorance, many cryptocurrency investors and traders have lost a lot of money on counterfeit coins, leveraged bets, and other disasters. They lack knowledge on how to build a portfolio, diversify their holdings, reduce their losses, and regulate their behavior in volatile cryptocurrencies. On the other hand, billions of people have never used blockchain technology or dislike cryptocurrencies.
Thirdly, content producers matter in three areas:
Blogs, documentaries, and infographics may help new and hesitant bitcoin users understand the complex environment. Knowledgeable investors can make better decisions.
Addressing major challenges and providing smart solutions builds credibility and confidence. Over the last several years, Bitcoin has made great development, yet trust issues remain due to past thefts.
Promote community-relevant discussions to increase involvement. Engaging content may drive user conversations and build a brand or project community. This sense of belonging may increase brand loyalty and advocacy.
References
1-https://news.bitcoin.com/tr/bybit-ceo-unluler-direkt-kripto-yatirim-tavsiyesi-vermekten-kacinmali/
2-https://www.globenewswire.com/news-release/2024/10/09/2960588/0/en/VanEck-Launches-30M-Fund-to-Support-Innovation-in-Fintech-Crypto-and-AI.html
3-https://bravenewcoin.com/insights/thai-sec-proposes-crypto-investment-options-for-private-and-mutual-funds