Thailand Issues New Regulations on Custodied Cryptocurrencies
The Securities and Exchange Commission (SEC) of Thailand has issued new regulations on custodied cryptocurrencies. Companies offering crypto custody services are now required to “establish a digital wallet management system to accommodate efficient custody of digital assets and keys and ensure safety of clients’ assets,” the regulator described.
Thai SEC’s New Crypto Rules
Thailand’s Securities and Exchange Commission (SEC) announced Tuesday that it has issued new rules on the “management of digital wallets for custody of digital assets and 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.
They must also have a “policy and guidelines” in place for the management of “digital wallets and keys as well as communication to clarify such policy, action plans and procedures, work supervision, and internal control to ensure compliance with the policy,” the SEC noted.
The regulator detailed that the businesses are additionally required to develop a “policy and procedures for designing, developing and managing digital wallets as well as creating, maintaining and accessing keys or other related information appropriately, securely and safely.”
Furthermore, crypto custody service providers must establish a “contingency plan in case of occurrence of any event that may affect the management system of digital wallets and keys,” the Thai SEC detailed. “This includes laying out and testing action procedures, designating responsible persons, 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.
Existing crypto service providers prior to the new regulations taking effect must fully comply with the new rules within six months from the effective date of the new regulations.
The Thai SEC has been ramping up its investor protection efforts relating to crypto. Earlier this month, the regulator launched Crypto Academy to help investors learn about digital assets before investing.