The Securities Exchange Commission (SEC). Thailand recently unveiled rules governing custodial cryptocurrency. Firms that offer 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 detailed.
Latest Crypto Regulations From The Thai SEC
The Thai Securities Exchange Commission (SEC), announced on Tuesday that new regulations have been set in place concerning the “management of digital wallets for the custody of digital assets and keys.” The new rules were implemented on January 16.
The Thai SEC stated that companies providing custody services to digital assets should:
Construct A digital wallet system that allows for secure storage and encryption of keys, and ensure the safety of customer assets.
Additionally, they must be able to communicate “policy and guidelines” regarding the management of “wallets and digital keys, as well as communicate to clarify said policy, action plans and procedures, supervision of work and internal control to guarantee compliance with the policy”, the SEC noted.
The Regulators stated that companies also need to 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 need to set up a “contingency plan in case any event occurs that may affect the digital wallet and key management system,” The Thai SEC outlined. “This includes designing and testing action plans, designating responsible persons, and reporting the event.”
The Securities regulator further stated:
It is necessary to conduct a system security audit and a digitalforensics investigation in case of an event that could affect the security of systems related to the storage of digital assets. This could have serious repercussions on customer assets.
Cryptographic Service providers who were in operation before the new regulations took effect must comply within six months.
The Thai SEC has been intensifying its cryptocurrency-related investor protection measures. Earlier This month, the regulator launched Crypto Academy To help investors learn about digital assets and make informed decisions before investing.
What What are your thoughts on the Thai SEC regulations on custodial crypto management? Let Let us know what you think in the comments section.
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