Thailand’s Securities and Exchange Commission (SEC) is taking a significant leap towards embracing cryptocurrency investment. On Wednesday, the SEC announced a proposal to revise regulations that will permit mutual and private funds to invest in digital assets, including crypto exchange-traded funds (ETFs) listed on U.S. exchanges. This initiative aims to align Thailand’s investment landscape with the growing global interest in cryptocurrencies, further solidifying the nation’s status as one of the most crypto-friendly countries in the world.
A Step Towards Modern Investment Opportunities
With Thailand ranking 10th globally in cryptocurrency adoption, the proposed regulations are timely. The SEC’s move is designed to cater to the increasing appetite among Thai investors for innovative financial products. According to Deputy Secretary-General Anek Yooyuen, the revised criteria will ensure that investment tokens mirror traditional securities in terms of investment ratios and risk profiles. This approach recognizes the evolving nature of financial assets and aims to facilitate a smoother transition for institutional investors and ultra-high-net-worth individuals who may have higher risk tolerances.
Under the proposed regulations, mutual and private funds will be allowed to invest in specific investment tokens, while adhering to existing limits on traditional securities. These limits include single-entity, group, and concentration limits. Notably, for institutional investors and ultra-high-net-worth individuals, the SEC plans to eliminate investment limits for crypto ETFs, opening the floodgates to a broader range of investment strategies.
Strengthening Regulatory Frameworks
The SEC is also keen on refining its regulatory frameworks to ensure secure and transparent investment environments. The proposed revisions will enhance asset custody protocols, digital asset valuation methodologies, and information disclosure standards. This level of diligence is crucial for maintaining investor confidence and safeguarding against potential market volatility.
In June, Thailand made headlines by approving its first crypto ETF, issued by One Asset Management (ONEAM), marking a pivotal moment in the country’s digital asset landscape. This approval signaled the Thai SEC’s commitment to developing a robust regulatory framework for cryptocurrencies, allowing investors to engage with digital assets in a structured and regulated manner.
Future Initiatives and Increased Penalties
In addition to the proposed mutual fund regulations, the Thai SEC is considering new measures, such as allowing authorized initial coin offering (ICO) portals to utilize outsourced companies. This initiative aims to streamline the ICO process while ensuring compliance with existing regulations. Furthermore, the SEC plans to expand its regulatory sandbox project, allowing ten private companies to test crypto exchanges for Thai baht.
However, the SEC is also taking a firm stance against non-compliance. Violations of crypto regulations will be treated as serious offenses, with plans to increase penalties for companies that breach the rules. Securities firms that send inappropriate trading orders could face fines ranging from 1 million to 3 million baht, while investors engaging in stock manipulation may be subject to both civil and criminal penalties.
Thailand’s SEC is laying the groundwork for a more inclusive and regulated cryptocurrency market, aligning with global trends while catering to local investor interests. As the country positions itself as a leading player in the crypto space, the proposed regulations for mutual funds to invest in digital assets could herald a new era of investment opportunities, attracting both local and international investors. With an evolving regulatory framework, Thailand is set to maintain its momentum in the dynamic world of cryptocurrencies.
Since its launch in late March, World Liberty Financial’s stablecoin USD1 has achieved an impressive market capitalization, reflecting strong investor interest. If the creators want to maximize USD1’s reach by accessing markets abroad, particularly in Europe, they must confront MiCA’s extensive compliance list.
In a BeInCrypto interview, experts from Foresight Ventures, Kaiko, and Brickken stressed the importance of stablecoin issuers having substantial European bank reserves, operational volume caps protecting the euro, and transparent USD1 information to ensure transparency and avoid conflicts of interest.
USD1’s Search for Dollar Dominance
World Liberty Financial (WLF), a decentralized finance (DeFi) project heavily associated with the Trump family, officially launched USD1 a month ago. Through this stablecoin, WLF aims to promote dollar dominance worldwide.
So far, this initiative has been working well for WLF. According to CoinGecko, USD1 has now surpassed a market capitalization of $128 million and reached a 24-hour trading volume of nearly $41.6 million. The project has already released 100% of its total supply of 127,971,165 tokens.
USD1’s market capitalization over the past 24 hours. Source: CoinGecko.
For WLF to seriously establish dollar dominance across the globe, it will have to move fast and efficiently. This urgency stems from the need to surpass its main competitors, USDT and USDC. These rivals currently hold a massive market share advantage.
Additionally, there’s a need to maintain a competitive advantage against established currencies like the euro.
USD1 needs to access foreign markets and stand out from established competitors to achieve this. Should Europe become a primary target, USD1 must prepare to tackle numerous challenges head-on.
The EU’s Stringent Compliance Demands
The European Union (EU) became the first jurisdiction in the world to establish a comprehensive regulatory framework for digital assets across its 27 member states. This regulation, known as Markets in Crypto-Assets (MiCA), has been in effect for nearly four months. Through this legislation, the EU has confirmed how seriously it takes compliance with a defined regulatory regime.
The regulation is detailed and clear, leaving no room for interpretation. If USD1 wants to operate in this crypto market of 31 million users, it must ensure it meets every demand.
US Senators Flag Risks of Presidential Involvement in USD1
In the letter, the group asked both agencies to clarify how they plan to uphold regulatory integrity following the issuance of USD1.
The Senators cautioned that letting a president personally benefit from a digital currency overseen by federal agencies he has sway over is a big risk to the financial system. They argued that an unprecedented situation like this one could hurt people’s trust in how regulations are made.
“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success presents unprecedented risks to our financial system,” they argued.
The letter further detailed situations where Trump could directly or indirectly affect decisions regarding USD1.
As things stand, USD1 isn’t well-prepared to follow MiCA’s strict reporting and transparency rules.
How Do Concerns Over USD1 Impact MiCA Acquisition?
According to Ianeva-Aubert, if USD1 doesn’t clear up doubts over potential conflicts of interest, this would affect its ability to apply for an operating license in the European Union.
“MiCA requires strong governance, including independent directors and clear separation between owners and managers. Issuers must have clear rules to handle conflicts of interest. If USD1 has any conflicts, this could make it harder to comply,” she said.
Ianeva-Aubert also highlighted that WLF still hasn’t released enough public information on USD1 to assess the degree of its compliance effectively. In particular, the stablecoin issuer has not disclosed the measures it would take to safeguard against market manipulation.
As of now, USD1 would likely fail MiCA’s transparency tests. However, industry experts pointed out other parts of the framework that might be even larger obstacles for USD1 to operate across the European Union.
Impact of the EU’s Reserve Mandate on USD1
When asked about the biggest regulatory hurdles USD1 would face in securing a MiCA license, experts’ responses were unanimous. The stablecoin would need to store a large portion of its reserves in a European bank.
This mandate has proven difficult for established stablecoin issuers seeking operations across the region.
This regulation aims to ensure seamless accessibility for European crypto users and traders. For Forest Bai, Co-founder of Foresight Ventures, USD1 could capitalize on this opportunity during the early stages of its development. By doing so, it could avoid some of the obstacles its competitors had to endure.
Yet, even as USD1 scales and its demand grows, other mandatory requirements could restrict its scope of success.
MiCA’s Transaction Volume Caps to Preserve Euro Dominance
As part of the MiCA regulation, the European Union has taken specific measures to safeguard the euro’s dominance. If a digital currency not denominated in euros were to become extensively adopted for daily payments within Europe, it could present a potential risk to the European Union’s financial sovereignty and the stability of the euro.
To contain this possibility, MiCA places volume caps on transactions used as a means of exchange within the EU.
In other words, MiCA establishes predefined limits on the transactional volume of such currencies. The EU initiates regulatory measures when these limits are exceeded due to widespread payment usage.
Specifically, USD1 issuers must suspend any further digital currency issuance and provide a remediation plan to the relevant regulator, outlining steps to ensure their usage does not negatively impact the euro.
If USD1 wants to work in places where it can experience uninhibited growth, the European market might not be the best fit for this stablecoin. Other parts of MiCA also suggest this could be the case.
MiCA Limitations to Stablecoins as Investment Vehicles
EU regulators have been clear that stablecoins, or e-money tokens (EMTs), as the regulation refers to them, are payment instruments that should not be confused with investment vehicles. The MiCA framework has a few rules in place to prevent this.
Given the circumstances, experts like Bai think WLF might want to focus on countries with better market conditions for stablecoin issuers.
Should WLF Consider the EU Market for USD1 Operations?
While the European Union has an undeniable crypto market presence, other jurisdictions have an even larger footprint.
”The EU’s crypto market remains comparatively small, with just 31 million users versus Asia’s 263 million and North America’s 38 million users, according to a report from Euronews. This limited market size may not justify MiCA compliance costs for projects, like WLFI,” Bai told BeInCrypto, adding that “Projects ultimately determine their own growth strategy. Given that, currently, the EU represents a secondary market for USD1, the project’s strategic priorities may naturally shift toward regions with less stringent stablecoin regulations to drive its adoption.”
These circumstances alone may prompt USD1 to reconsider its options.
In fact, USD1 could start by gaining a competitive edge right at home.
USD1’s Political Backing at Home
With a crypto-friendly president in office –whose very crypto project officially announced the launch of USD1– the stablecoin has sufficient backing to make its mark.
Looking past the immediate future, Bai underlined that if the US doesn’t keep developing supportive crypto regulations, USD1’s growth in the country could be held back following a government shift.
Given this reality, USD1’s failure to comply with the EU’s regulations, should it ever even consider applying for a MiCA license in the first place, could have negative consequences for the project’s long-term viability.
Regardless of the markets WLF evaluates in its efforts to increase the reach of USD1, compliance with general stipulations concerning transparency, legal architecture, and real-time transaction oversight could be conducive to its eventual success.
Strategy, formerly MicroStrategy (MSTR), has announced plans to issue 2.5 million shares of 10% Series A Perpetual Stride Preferred Stock (STRD) to raise funds to expand its Bitcoin holdings and support working capital.
The company aims to raise approximately $250 million from this initial public offering (IPO), based on an initial liquidation preference of $100 per share. Meanwhile, other firms are also advancing Bitcoin treasury initiatives across the globe.
Strategy Plans Major IPO to Raise Funds for Bitcoin Expansion
According to Strategy’s official announcement, the offering targets institutional and select non-institutional investors. Holders are eligible for non-cumulative dividends, paid quarterly if declared, at a 10% annual rate.
“Strategy will have the right, at its election, to redeem all, but not less than all, of the STRD Stock, at any time, for cash if the total number of shares of all STRD Stock then outstanding is less than 25% of the total number of shares of STRD Stock originally issued in the offering and in any future offering, taken together,” the statement read.
The offering plan follows Strategy’s latest acquisition of 705 BTC for around $75.1 million yesterday. SaylorTracker data shows that the firm holds 580,955 BTC, valued at over $60 billion.
Strategy’s move comes amid a wave of corporate cryptocurrency adoption. On June 2, Hong Kong-based Reitar Logtech Holdings Limited (RITR), a logistics solutions provider, revealed that it is in advanced negotiations to create a strategic Bitcoin treasury. The initiative aims to purchase up to 15,000 BTC, valued at approximately $1.5 billion.
“Management believes this treasury diversification could provide several strategic benefits including enhanced financial resilience through allocation to a non-correlated digital asset, increased financial flexibility for future strategic acquisitions in logistics technology and automation platforms, and positioning for expansion in high-growth Asian markets where demand for smart logistics infrastructure continues to increase,” the filing read.
Similarly, the Norwegian Block Exchange (NBX) made history as Norway’s first listed company to adopt Bitcoin as a treasury asset. The company has acquired 6 Bitcoin and aims to raise its holdings to 10 BTC by June.
In Russia, Sberbank, the country’s largest bank, launched structured bonds tied to Bitcoin. This product is available to a limited group of qualified investors in the over-the-counter market.
“Ethereum remains at the core of our blockchain infrastructure strategy. Our expanding ETH position is not simply a treasury play-it’s a strategic byproduct of our NodeOps and high-growth Builder+ activities. We are focused on building highly scalable, revenue-generating infrastructure,” CEO Charles Allen said.
Now, it has entered into an agreement to issue up to $500 million in senior secured convertible notes, with an initial $11 million funding set to close soon. A significant portion of the proceeds, up to 80%, will be allocated to purchasing SOL.
Ethereum has seen some sideways movement this week, helping the altcoin break out of a nearly three-week-long downtrend. Despite facing bearish cues, including whale selling, Ethereum’s price has managed to hold steady.
This stability is raising expectations of an upcoming breakout, potentially setting the stage for a rise.
Ethereum Whales Move To Sell
Whale addresses are exhibiting bearish sentiment at the moment, as several large holders have started to liquidate their positions.
In the last 48 hours, addresses holding between 1 million and 10 million ETH sold over 1.06 million ETH worth approximately $2.57 billion.
Whale selling typically exerts downward pressure on the price, signaling potential bearishness. However, in this case, Ethereum’s price has continued to sustain itself, which indicates market resilience.
Looking at Ethereum’s macro momentum, the IOMAP (In/Out of the Money Around Price) chart reveals a significant demand zone for ETH. The zone holds 65.83 million ETH, valued at over $159 billion.
These holdings were bought between the $2,349 and $2,421 range, establishing a strong support area.
The large number of investors who purchased ETH in this price range are unlikely to sell at break-even or loss, making it difficult for the price to fall below this key support.
This demand zone acts as a solid cushion for Ethereum’s price, protecting it from any sharp declines. The support from these investors provides a foundation for Ethereum’s price to remain stable despite the recent selling pressure.
As a result, the price is less likely to drop sharply below the $2,344 mark, which would otherwise signify a more significant bearish trend.
Ethereum’s price is currently trading at $2,424, just under the critical resistance of $2,476.
While there has been no significant rise, the sideways movement has allowed ETH to break out of the three-week downtrend. This consolidation phase is setting the stage for potential upward momentum.
The factors discussed earlier indicate that Ethereum may continue to consolidate between $2,344 and $2,476 or potentially break through the resistance.
If Ethereum successfully flips $2,476 into support, a rise to $2,606 is likely. This would mark a significant breakout and could attract more buyers into the market.
On the other hand, if broader market conditions turn extremely bearish, similar to last week’s sentiment, Ethereum’s price could slip below $2,344 and fall to $2,205.
A drop below this support would invalidate the current bullish thesis, potentially signaling a further decline.