• The Securities and Exchange Commission of Thailand has unveiled a new set of regulations for digital asset service providers in the country.
• These regulations require firms operating in the digital assets space to establish a digital wallet management system for efficient custody of digital assets and keys.
• The new regulations also require digital assets service providers to have certain policies and procedures in place to address the designing, development and management of digital wallets and keys.
The Securities and Exchange Commission of Thailand (SEC) has recently released a new set of regulations for digital asset service providers in the country. This move comes as part of the regulator’s efforts to increase oversight of the crypto industry and enhance consumer protections.
The new regulations will require digital asset service providers to furnish a contingency plan in case an unforeseen event puts the platforms and the clients‘ assets at risk. The SEC also requires firms operating in the digital assets space to establish a digital wallet management system for efficient custody of digital assets and keys. This system would also ensure the safety of clients‘ assets.
In addition, the Thai SEC has mandated that digital assets service providers have certain policies and procedures in place. These policies would address the designing, development and management of digital wallets and keys. These new regulations came into effect on 16 January 2023, and crypto custodians who have been catering to clients since before this date are required to fully comply with the new regulations within six months.
The Thai regulators have been ramping up oversight and regulation of the crypto industry since last year. Their efforts were further reinforced following the collapse of Binance, one of the world’s leading cryptocurrency exchanges.
The new regulations are part of Thailand’s broader push to become a regional leader in digital asset and blockchain technology. The government has been actively promoting the development of the digital economy, and the new regulations are expected to pave the way for the growth of the crypto industry in the country.