Custodied cryptocurrencies to see new regulations in Thailand

Custodied cryptocurrencies will see new regulations in Thailand. The Securities and Exchange Commission of Thailand issued new measures which require companies offering crypto custody services 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 January 16th. The new measures also state that companies must have a “policy and guidelines” in place for the management of such new “digital wallets and keys as well as communication to clarify such policy, action plans and procedures, work supervision, and internal control to ensure compliance with the policy.”

According to Bitcoin.com, the SEC furthered that businesses are also required to develop a “policy and procedures for designing, developing and managing digital wallets as well as creating, maintaining and accessing keys or other related information appropriately, securely and safely.”

Crypto custody service providers must also establish a “contingency plan in case of 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.”

The SEC also noted that an audit of system security is now required as well as a digital forensic investigation in case any event affects the systems’ security related to digital asset custody.

The new regulations require existing crypto service providers to adhere to the new measures by fully complying with the new rules within six months from January 16, 2023.

The SEC has been increasing investor protection efforts related to crypto. The authority launched a Crypto Academy earlier this month to help investors learn about such digital assets before deciding to invest.

Thailand’s entry into the cryptocurrency scene was largely due to Topp Jirayut Srupsrisopa, the Founder and Group CEO of Bitkub Capital Group Holdings Co., Ltd. Topp is credited for creating Thailand’s largest blockchain and digital asset group of companies.