There is an increased interest in investments based on cryptocurrencies. This is quite evident from the way some of the listed cryptocurrencies available for futures trading in CME Group and CBOT though these are prevalent in the United States. However, there is a call for asset management enterprises in Thailand with a focus on launching virtual asset funds. This has forced the Thailand Securities and Exchange Commission (SEC) to analyze the pros and cons of allowing it.

No Proposal

Currently, there is no proposal in front of the SEC as complete analysis is required. The regulator’s deputy secretary general Tipsuda Thavaramara thinks that the proposal needs careful consideration terming it a fresh investment asset class. His cautionary statement is quite understandable when he pointed out that “If something goes wrong, there will be a huge impact on the mutual fund industry.”

The latest reaction is in response to the Association of Thai Securities Companies’ chairperson, Pattera Dilokrungthirapop, indicating its member’s interest in digital assets and connected businesses. This included initial coin offerings (ICOs) websites, as well as, exchanges apart from dealers and brokers of cryptocurrency. The interest level is growing on the emerging asset class on the back of strong growth in bitcoin price last year though it is struggling in the current year.

Sub-Categories

Crypto Fund Research pointed out that there is a number of subcategories within the cryptocurrencies fund like virtual asset funds, blockchain funds, and digital currency funds. Its research found over 600 funds focused on cryptocurrency and distributed ledger technology (DLT), and the majority of them were created as hedge funds. At the same time, there were also several funds associated with venture capital funds too.

According to the Crypto Fund Research, the American-based digital coin funds are not registered entities with the regulator. That is mainly because of the exemption of being small thus qualifying for exempt advisers. However, the Commodity Futures Trading Commission has ruled that bitcoin and ethereum are commodities while the SEC has regarded most ICOs as security tokens.

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