The Securities and Exchange Commission (SEC) of Thailand has issued new regulations on custodial cryptocurrencies. Firms offering crypto custody services must now “establish a digital wallet management system to accommodate efficient custody of digital assets and keys and ensure the security of client assets,” the regulator described.
New Crypto Rules From The Thai SEC
The Thai Securities and Exchange Commission (SEC) announced on Tuesday that it has issued new rules on the “management of digital wallets for the custody of digital assets and keys.” The new regulations went into effect on January 16.
The Thai SEC explained that companies that provide custody services for customers’ digital assets must:
Establish a digital wallet management system to accommodate efficient custody of digital assets and keys and ensure the safety of customer assets.
Likewise, they must have a “policy and guidelines” for the management of “wallets and digital keys, as well as communication to clarify said policy, action plans and procedures, work supervision and internal control to ensure compliance with the policy”, it was pointed out by the SEC.
The regulator detailed that companies must also develop a “policy and procedures to design, develop and manage digital wallets, as well as create, maintain and access keys or other related information in a proper, safe and secure manner.”
In addition, crypto custody service providers must establish a “contingency plan in case any event occurs that may affect the digital wallet and key management system,” the Thai SEC detailed. “This includes designing and testing action procedures, designating responsible persons, and reporting the event.”
The securities regulator further stated:
A system security audit is also required, as well as a digital forensics investigation in the event of any event that affects the security of systems related to the custody of digital assets, which could cause significant impacts on customer assets.
Cryptographic service providers existing before the new regulations take effect must fully comply with the new rules within six months from the effective date of the new regulations.
The Thai SEC has been stepping up its cryptocurrency-related investor protection efforts. Earlier this month, the regulator launched the Crypto Academy to help investors learn about digital assets before investing.
What do you think of the new Thai SEC rules on the management of custodial cryptocurrencies? Let us know in the comments section.
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