The Securities and Exchange Commission of Thailand (SEC), announced Tuesday that new rules were issued regarding the “management of digital wallets to custody of digital assets and keys.” These new regulations came into effect Jan. 16.
According to the Thai SEC, businesses providing custody services for digital assets of clients must:
To ensure client safety and efficient custody of digital assets, establish a digital wallet management program.
The SEC stated that they must have a policy and guidelines in place to manage ‘digital wallets’ and keys, as well as communication to clarify such policy and action plans and procedures. They also need to maintain internal control and supervision to ensure compliance with the policy.
The regulator stated that businesses must also develop policies and procedures to design, develop, and manage digital wallets, as well as create, maintain, and access keys or any other information appropriately, securely, and safely.
The Thai SEC stated that crypto custody service providers must create a ‘contingency program in case of any event that could affect the management system for digital wallets or keys’. This includes testing and defining responsible persons and reporting on the event.
Further, the securities watchdog stated:
A system audit is required in the event of any events affecting digital asset custody security. This could have significant impact on client assets.
Existing crypto service providers must comply fully with the new rules within six month of the effective date.
The Thai SEC is increasing its protection of crypto investors. To help investors understand digital assets and make informed investments, the regulator launched Crypto Academy earlier this month.