Thai SEC proposes new rules for digital asset custodians

The Thai SEC is seeking public input for newly proposed crypto custody regulations until late September.

Thai SEC proposes new rules for digital asset custodians

The Securities and Exchange Commission (SEC) of Thailand continues delivering  new rules and regulations for the crypto industry, for investor protection concerns.

On 25 Aug, The Thai SEC proposed a set of additional regulations related to custody of investors' cryptocurrency holdings held by digital asset business operators. The newly proposed rules refer to custody of fiat money for digital asset accounts as well as cryptocurrency lending, or earning interest on crypto holdings.

The SEC is specifically looking to stop the crypto companies from using investor assets for the “benefit of another client or other persons,” or seeking benefits from both investors’ fiat money and digital assets, including digital lending to other persons. “Seeking benefits from clients’ fiat money shall be prohibited except in the form of deposit with commercial banks,” the proposal reads.

The new rules also propose a new framework for the withdrawal and transfer of fiat money from digital asset accounts, requiring compliance with the principles of “decentralized approval authority, multi-sign approval authority, and check and balance.” 

The SEC is now accepting public comments on newly proposed regulations until Sept. 22. 

The Thai SEC has been actively introducing new crypto industry regulations this year amid booming cryptocurrency adoption in the country. In March, the authority proposed to impose a $32k  minimum annual income requirement for investing in cryptocurrencies like Bitcoin (BTC). The regulator previously banned crypto exchanges from handling certain token types including nonfungible tokens in June.

Read: MicroStrategy adding more 3,907 BTC to its holdings