Thailand Issues New Regulations for Custody Cryptocurrencies – Regulation

The Securities and Exchange Commission (SEC) of Thailand has issued new regulations regarding custody cryptocurrencies. Companies offering crypto custody services must now “establish a digital wallet management system to enable efficient custody of digital assets and keys and ensure the security of customers’ assets,” the regulator described.

The Thai SEC's new crypto rules

Thailand's Securities and Exchange Commission (SEC) announced on Tuesday that it has issued new rules for the "management of digital wallets for the custody of digital assets and keys." The new regulations came into force on January 16th.

The Thai SEC stated that companies providing custody services for customers' digital assets must do the following:

Establish a digital wallet management system to enable efficient custody of digital assets and keys and ensure the security of customers' assets.

They must also have a “policy and guidelines” for the management of “digital wallets and keys, as well as communications to clarify such policies, action plans and procedures, labor oversight and internal control to ensure compliance with the policy.” SEK noted.

The regulator explained that companies are additionally required to develop “policies and procedures for the design, development and management of digital wallets and the appropriate, safe and secure creation, maintenance and access of keys or other related information.”

In addition, crypto storage service providers must prepare a “contingency plan in the event of an event that could affect the management system of digital wallets and keys,” the Thai SEC explained. “This includes designing and testing sequences of actions, naming responsible people and reporting the event.”

The securities regulator further stated:

An audit of system security is also required, as well as a digital forensic investigation in the event of an event that compromises the security of systems related to the custody of digital assets and could have a significant impact on customers' assets.

Existing crypto service providers prior to the entry into force of the new regulations must fully comply with the new regulations within six months from the effective date of the new regulations.

The Thai SEC has stepped up its efforts to protect investors when it comes to crypto. The regulator launched earlier this month Crypto Academy to help investors learn about digital assets before investing.

What do you think of the Thai SEC's new rules for managing custody cryptocurrencies? Let us know in the comments section below.

Kevin Helms

As a student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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