The SEC of Thailand continues introducing new regulations for the cryptocurrency industry, citing investor protection concerns.
The Thai SEC proposed a set of additional guidelines related to custody of investors’ cryptocurrency holdings held by digital asset business operators. The newly proposed rules refer to custody of fiat money for digital asset accounts as well as cryptocurrency lending, or earning interest on crypto holdings.
The SEC is specifically looking to prohibit crypto companies from using investor assets for the benefit of another client or seeking benefits from both investors’ fiat money and digital assets, including digital lending to other persons.
The new guidelines also propose a new framework for the withdrawal and transfer of fiat money from digital asset accounts, requiring compliance with the principles of decentralized approval authority, multi-sign approval authority, and check and balance.” According to the regulator, the rules would strengthen investor protection and the reliability of crypto service providers, ensuring that records of investors’ holdings are accurate and updated.
