The Securities and Exchange Commission of Thailand is working to better protect cryptocurrency investors by introducing new rules for crypto custody services.
The Thai SEC issued regulations requiring virtual asset service providers to establish a digital wallet management system to guarantee efficient custody. The new rules target crypto custodians or VASPs that provide crypto storage services.
The regulations include three major requirements, including the provision of policy and guidelines for overseeing the risk management of digital wallets and private keys. The rules require VASPs to communicate with regulators regarding such policies and provide action plans to ensure compliance.
Additionally, the SEC requested crypto custodians provide policies and procedures for designing, developing and managing digital wallets and keys. The authority will also require crypto custodians to establish a contingency plan in case of unforeseen events that may affect the wallet management system.
The latest crypto regulations by Thailand’s SEC align with the authority’s plans to adopt more strict crypto regulations in the aftermath of industry failures like the FTX collapse.
