Thailand Releases New Custodial Cryptocurrency Regulations – Regulation Bitcoin News

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Thailand’s Securities and Exchange Commission (SEC) has issued new regulations on custody cryptocurrencies. Firms offering crypto custody services are now required to “implement a digital wallet management system to enable effective safekeeping of digital assets and keys and to ensure the security of client assets,” the regulator described.

New crypto rules from Thai SEC

Thailand’s Securities and Exchange Commission (SEC) announced on Tuesday that it had issued new rules on the “management of digital wallets for the safekeeping of digital assets and keys”. The new regulations came into force on January 16.

The Thai SEC explained that companies that provide custodial services for customers’ digital assets must:

Establish a digital wallet management system to enable effective custody of digital assets and keys and ensure the security of customer 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 this policy, action plans and procedures, work supervision and internal control to ensure compliance with the policy,” the SEC noted.

The regulator clarified that companies are additionally required to develop “policy and procedures for the design, development and management of digital wallets as well as the creation, maintenance and access to keys or other related information in an appropriate, secure and secure manner”.

In addition, crypto custodial service providers must establish a “contingency plan in the event of the occurrence of any event that may affect the digital wallet and key management system”, detailed the Thai SEC. “This includes setting up and testing procedures for action, designating responsible persons and reporting the event.”

The securities watchdog further said:

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 client assets.

Crypto service providers in existence before the new regulations came into effect must fully comply with the new rules within six months from the date the new regulations come into effect.

The Thai SEC has stepped up its crypto investor protection efforts. Earlier this month, the regulator launched Crypto Academy to help investors learn about digital assets before investing.

What do you think of the new rules from the Thai SEC on the management of cryptocurrencies on deposit? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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