- Thai SEC introduced new regulations for crypto custody service providers.
- Crypto custodians in the country will have to submit a contingency plan.
- Thailand’s financial regulators ramped up crypto regulation following FTX’s collapse.
The Securities and Exchange Commission (SEC) of Thailand has brought forward a new set of regulations for digital asset service providers in the country. The new rules are part of a larger overhaul aimed at stricter crypto regulations for better consumer protection.
According to a press release by the Thai SEC, the new regulations will require companies operating in the digital asset space to establish a digital wallet management system. This is to help with the efficient custody of digital assets and to ensure the safety of customers’ assets.
Additionally, the Thai SEC stated that the crypto custodians will also need to have a provision of policy and guidelines that specifically address the risk and management of digital wallets and keys. Further policy provisions include designing, developing, and managing digital wallets in a safe and secure manner.
The regulations, which took effect yesterday, also required digital asset service providers to come up with a contingency plan to prepare for any event that may put their digital wallets and keys in jeopardy. The Thai SEC reports that an audit of their system security will also be required.
All crypto custodians operating in Thailand will have to comply with the new regulations within six months. The strict regulations are a part of the Thai SEC’s response to FTX’s collapse last year. The securities regulator’s ramped-up efforts to regulate the crypto industry include control over crypto advertising and better cybersecurity.
Earlier this month the SEC launched a probe into local crypto exchange Zipmex. According to the regulator, the exchange, which is currently in the process of being acquired by V Ventures, may have violated local rules pertaining to digital assets.
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