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The Securities and Exchange Commission (SEC) of Thailand has issued new regulations on custodied cryptocurrencies. According to Thailand SEC, companies offering crypto custody services are now required to establish a digital wallet management system to accommodate efficient custody of digital assets and keys and ensure the safety of clients’ assets. The new regulations went into effect on Jan. 16.
Thailand SEC Unveils New Rules on Cryptocurrencies
According to the new rules, companies must also have a policy and guidelines in place for the management of digital wallets and keys as well as communication to clarify such policies, action plans and procedures, work supervision, and internal control to ensure compliance with the policy. The regulator detailed that the businesses are additionally required to develop a policy for designing, developing, and managing digital wallets as well as creating, maintaining, and accessing keys or other related information appropriately, securely, and safely.
The Need for a Contingency Plan
Thai SEC also revealed that crypto custody service providers will now be required to establish a contingency plan in case of the occurrence of any event that may affect the management system of digital wallets and keys. This includes laying out and testing action procedures, designating responsible persons, and reporting the event. Existing crypto service providers prior to the new regulations taking effect must fully comply with the new rules within six months from the effective date of the new regulations.