New Thai SEC Regulation for Crypto Custodians Requires Contingency Plan

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The Securities and Exchange Commission (SEC) of Thailand has issued regulations for custodians in the crypto space operating in the jurisdiction.

The new rules require commercial operators of digital assets that provide custody of customers’ digital assets to implement a digital wallet management system to enable effective safekeeping of digital assets and keys and ensure the security of customer assets. .

By “keys”, the regulator means a cryptographic key or any other data that must remain confidential in order to be used for the approval of transfers or transactions related to digital assets in digital wallets.

Risk management, digital wallets, keys and contingency plan

The new Thai SEC regulations came into effect on January 16, 2023. Digital asset trading operators who had held custody of client assets prior to the regulations’ effective date are required to fully comply in six months from the effective date.

The regulations cover the following requirements:

Policy and guidelines to oversee risk management and management of digital wallets and keys as well as communication to clarify this policy, action plans and procedures, work supervision and internal control to ensure compliance with the Policy; Policy and procedures for designing, developing and managing wallets and creating, maintaining and accessing keys or other related information in an appropriate, secure and secure manner; Contingency plan in the event of the occurrence of any event likely to affect the management system of wallets and digital keys. This includes setting up and testing action procedures, designating responsible persons and reporting the event. A system security audit is also required as well as a digital forensic investigation in the event of an event affecting the security of systems related to the custody of digital assets, which could have significant impacts on customer assets. Thai SEC Launches Free Online Crypto Courses

Earlier this month, the Thai regulator launched the SEC Crypto Academy“, an online channel for the public to learn fundamental knowledge about digital assets, better understand the risks associated with digital assets, set up a self-protection mechanism and to keep abreast of digital asset investment frauds and scams.

Free, SEC Crypto Academy core courses include:

(1) Introduction for beginners: introducing fundamental knowledge and correct understanding of the global world of digital assets,

(2) Fundamentals of digital assets: establish the background and formation mechanisms essential to blockchain technology,

(3) the past, present and future of digital assets: recite the major milestones of the past and turning points in the world of digital assets, digital tokens, NFT, the metaverse and the outlook for future asset markets digital, and

(4) Investment Mindset and Strategies: Creating a positive mindset and attitudes towards investing in digital assets to reduce risk and introduce the use of basic tools for technical analysis.

Upon completion of all courses, learners will be invited to take the Crypto Quotient (CQ) test to check their readiness to enter the world of digital asset investing.

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