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Tuesday, May 30, 2023

Thailand’s SEC Issues New Regulations for Crypto Custody Services

Thailand’s SEC Issues New Regulations for Crypto Custody Services – The Securities and Exchange Commission (SEC) of Thailand announced new regulations for the management of digital wallets used to store and safeguard digital assets and their associated keys. The new regulations went into effect on Jan. 16. The Thai SEC explained that businesses that provide custody services for clients’ digital assets must: “Establish a digital wallet management system to accommodate efficient custody of digital assets and keys and ensure safety of clients’ assets.” 

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The SEC stated that businesses must have a policy and guidelines in place for managing digital wallets and keys, as well as clear communication outlining the policy, action plans, procedures, supervision and internal controls to ensure compliance. Additionally, they are required to develop a policy and procedures for designing, developing, managing digital wallets, and securely creating, maintaining and accessing keys or other related information.

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The Thai SEC has stated that crypto custody service providers must have a plan in place for unexpected events that could affect the management of digital wallets and keys. This plan should include procedures, designated individuals responsible for carrying out those procedures, and reporting the event. The securities watchdog further stated: “An audit of system security is also required as well as digital forensic investigation in case of any event affecting the security of systems related to digital asset custody, which could cause significant impacts on clients’ assets.”

The Thai Securities and Exchange Commission (SEC) has implemented new regulations for cryptocurrency service providers. These providers are required to fully comply with the new rules within six months of the regulations taking effect. This is part of the Thai SEC’s ongoing efforts to increase investor protection in the cryptocurrency market. 

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Recently, the regulator launched the Crypto Academy, which is an educational initiative designed to help investors gain a better understanding of digital assets before making any investments. This move is a sign of the regulator’s commitment to promoting safe and responsible investment in the cryptocurrency market.

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