Thailand Preparing New rules for cryptographic services
2023.01.17 12:37
Thailand Preparing New rules for cryptographic services
By Tiffany Smith
Budrigannews.com – By introducing new regulations for crypto custody services, the Securities and Exchange Commission (SEC) of Thailand is attempting to enhance investor protection for cryptocurrency.
The Thai Securities and Exchange Commission (SEC) issued regulations on January 17 requiring digital wallet management systems to ensure effective custody for virtual asset service providers (VASP). Cryptocurrency storage service providers, or VASPs, are the targets of the new regulations.
There are three major requirements in the regulations, one of which is the establishment of a policy and guidelines for monitoring the risk management of digital wallets and private keys. VASPs are required by the regulations to discuss such policies with regulators and provide action plans to ensure compliance.
In addition, the Securities and Exchange Commission (SEC) demanded that crypto custodians provide guidelines for the creation, maintenance, and design of digital wallets and keys. In the event of unforeseen circumstances that could have an impact on the wallet management system, the authority will also require crypto custodians to develop a backup strategy.
The SEC stated, adding, “This includes laying out and testing action procedures, designating responsible persons, and reporting the event.”
“In the event of any event affecting the security of systems related to digital asset custody, which could cause significant impacts on clients’ assets, an audit of system security is also required, as is a digital forensic investigation.”
The announcement states that the new rules will go into effect on January 16, 2023. Within six months of the effective date, crypto custodians must fully comply.
The SEC of Thailand’s most recent crypto regulations are in line with the authority’s plans to implement more stringent crypto regulations following industry failures like the FTX collapse.
The authority is said to have opened a new investigation against the local cryptocurrency exchange Zipmex at the beginning of January, claiming that the company had been providing services for digital asset fund management without permission.
