Thailand issues new rules on detained cryptocurrencies
It was announced by the Securities and Exchange Commission (SEC) of Thailand that it has published the latest regulations on the management of digital wallets for the custody of digital assets and keys. Certainly these new rules will be helpful in managing the wallet as well as in other operations and the new rules were implemented effectively from 16th January. It is advised by the Securities and Regulation Commission of Thailand that businesses providing custody services for customer’s digital assets are required to accommodate efficient custody and safeguard customer’s assets and to discharge their overall status and responsibilities. A digital wallet management system should be set up. They have a policy and action plans and procedures for managing digital wallets and keys, as well as an internal control to ensure compliance in accordance with the policy, and a “policy and direction” for clarity and communication. instructions” is required. The regulator also had a detailed description of how businesses should conduct their entire transactions in a secure medium and also take necessary policies to maintain and access all the processes.
Additionally, cryptocurrency custody service providers are required to establish a “contingency plan in case of any incident affecting the digital wallet and keys management system”. This includes determining and testing work procedures and designating responsible persons for and reporting incidents. The securities watchdog further adds that there is a need for an audit of system security as well as a digital forensic investigation in case of any incident impacting security related to digital assets custody services. Certainly all of these processes can have a significant impact on customer’s wealth. Existing crypto service providers should fully comply with the latest rules within 6 months from the effective date of the new rules, before the new rules come into effect. Thailand’s Securities and Exchange Commission is ramping up its investment protection effort related to cryptocurrencies and earlier this month the regulator launched a new platform to help investors learn more about digital assets before investing in them, Crypto Academy was also launched.
