Thailand's SEC Introduces New Rules for Crypto Custodians

The Securities and Exchange Commission of Thailand has required VASPs, which specialize in providing custodial services, to create a digital wallet management system.

This is according to the regulator's website.

The purpose of the ruling is to ensure "efficient storage" of customer funds and keys. According to the regulations, VASPs must:

• Develop policies and guidelines to control risk management, and ensure communication with supervisors on the matter;
• create a "contingency" plan and arrange for regular security audits.

In addition, the SEC required operators to provide information on the development and management of digital wallets and keys.

The new rules went into effect Jan. 16, 2023.

In August 2021, the Commission proposed a regulatory framework for cryptocurrencies. According to the regulator, the rules would strengthen investor protection and the reliability of VASPs.