Thai securities regulator eases rules for traditional asset managers to obtain digital asset licenses

Thailand’s securities regulatory authority has recently decided to relax the rules surrounding digital asset licensing for traditional asset managers. In a functional move, the Securities and Exchange Commission of Thailand (SEC) announced an exemption for asset management and securities companies from the requirement to obtain a digital asset fund manager license. This exemption particularly applies to securities and asset management companies that are already in possession of licenses meant for mutual fund and private fund management and are involved in the management of digital assets.
The SEC provided its rationale for this regulatory shift in a statement released on March 24, aiming to allow conventional financial establishments to actively participate in the growth of investment tokens while simultaneously boosting the flexibility and diversification within mutual fund and private fund investments. This development follows a public hearing conducted by the regulator in the last quarter of the previous year, during which the proposed changes were discussed. Stakeholders and respondents mainly supported these changes, laying the groundwork for the consequent regulatory amendment.
By creating this exemption, Thailand paves the way for more investor access to investment tokens, both in primary and secondary markets, facilitated through traditional financial institutions. The SEC further highlights that this alteration will contribute to a comprehensive investment token ecosystem, enhancing investment flexibility and diversification for mutual funds and private funds. Significantly, these securities companies and asset management firms will continue to be governed by existing securities regulations.
This shift marks a significant step towards bridging traditional financial frameworks with evolving digital asset landscapes, indicating Thailand’s intention to embrace financial innovation while upholding security standards. The SEC’s decision to ease digital asset licensing requirements for traditional asset managers signifies a strategic commitment to fostering cross-collaboration and enabling a more comprehensive investment landscape within the nation.
This move is aligned with a broader trend observed within the region of declining traditional regulatory barriers and embracing the potential benefits of digital asset integration. By facilitating a regulatory environment that encourages the involvement of traditional financial institutions in digital asset management, Thailand can stay ahead of the curve in adapting to changing financial paradigms while maintaining investor protection and security regulations. Thailand’s recent regulatory amendment exemplifies the country’s active effort to solidify its position in the growing digital asset space, contributing to the continuous evolution and expansion of the country’s investment ecosystem.