Booming Crypto Market has Thai SEC Setting Registration Deadline For Digital Asset Managers

Booming Crypto Market has Thai SEC Setting Registration Deadline For Digital Asset Managers

The Thailand Securities and Exchange Commission (SEC) will also hold hearings this month to set guidance for crypto exchanges to protect retail investors.

On Monday, the Thailand Securities and Exchange Commission (SEC) unveiled numerous announcements that will affect virtual and crypto asset portfolio managers.

Beginning February 24, all asset managers and crypto investment advisers will need to apply for operating licenses from the regulator, the Bangkok Post reports.

According to the Thailand SEC, a virtual asset investment adviser is anyone who offers advice in regards to the trading of cryptos or digital tokens and receives remuneration from such services. Therefore, the latest regulations will apply to portfolio managers as well as digital asset fund distributors.

Before this announcement, fund managers dealing with assets not covered by the legal definition of futures contracts, securities, or other equivalent financial instruments were not under SEC supervision. Also, investors dealing with unregulated portfolio managers were not covered by investor compensation funds.

Although crypto exchanges have been operating under the SEC’s supervision, investors had little or no guidance when it came to portfolio managers. The regulator is now seeking to enhance crypto and digital assets oversight via fine-tuning the existing asset management regulations.

As per the existing rules, crypto exchanges must share the users’ information with the regulator when funds are transferred from one exchange to the other. This requirement focuses on containing the increasing illicit activities in the worldwide crypto industry.

According to the announcement, any fund manager who fails to apply for an operating license will be deemed engaging in illegal activities and forced to close down.

Thailand is the latest nation to come up with such requirements after several jurisdictions crafted similar regulations. The Thai SEC will be holding a hearing this month to set retail investor qualifications for exchanges according to the Bangkok Post. Europe is currently implementing AMLD5, a pan-European directive that ensures custodian wallet providers and crypto exchanges are governed within one EU AML platform.

Thailand is also implementing steps that enhance cryptos’ use and adoption by introducing regulations and guidelines that leverage the opportunities within the crypto and blockchain space.

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Author: Joseph Kibe

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