- Thailand’s SEC has issued new regulations for digital asset service providers.
- The new rules have emerged in light of the recent turmoil in the cryptocurrency industry.
Thailand’s Securities and Exchange Commission has announced a new set of regulations for digital asset service providers in the country. The new rules are part of recent efforts by securities regulators to increase oversight of the cryptocurrency industry and enhance consumer protection.
Contingency plans to protect client assets
New regulations from Thailand’s SEC require digital asset service providers to provide contingency plans in case an unforeseen event puts their platform and client assets at risk.of Press release said:
“System security audits and digital forensic investigations are also required in the event of an event that impacts the security of the system related to digital asset management.”
Thailand’s securities regulator will require companies operating in the digital asset sector to establish a digital wallet management system for efficient management of digital assets and keys. The system also ensures the safety of client assets.
The new regulations also require digital asset service providers to implement specific policies and procedures. These policies address the design, development, and management of digital wallets and keys.
The above regulations entered into force on January 16, 2023. Crypto administrators who have been serving customers since before this date will have six months to fully comply with the new regulations.
Thai Regulator Tightens Crypto Regulations
Thai regulators rushed to oversee and regulate the cryptocurrency industry last year amid a growing cryptocurrency epidemic.These Efforts Intensified Following The Collapse Of The Bahamas-Based Cryptocurrency Exchange FTX.
To protect consumers, the SEC launched an investigation into cryptocurrency advertising last year. Regarded as a vulnerable industry, regulators called for greater control over cryptocurrency advertising and increased cybersecurity.The regulator was in the news earlier this month probing Local crypto exchange Zipmex.