Thai SEC unveils new crypto custody update

Thai SEC

TL;DR Breakdown

  • Thai SEC releases new custody update
  • The regulator wants a stricter approach toward crypto
  • Firms have six months to comply

The Thai SEC has announced a new development regarding companies and platforms choosing to offer custodial services to crypto traders and users. According to the report, the regulator mentioned that it is working to enable an environment that protects investors of the assets. According to the update, each custodial platform will have to set up a management system for its custodial services while ensuring they are up-to-date and efficient.

Thai SEC wants a stricter approach toward crypto

The Thai SEC highlighted that the rules would govern only companies providing custody services of digital assets to its users. The highlighted rules were divided into three sections, with the first seeing the companies involved provide efficient risk management of their wallets and private keys.

The Thai SEC said for them to actualize this, they must first crest a guideline that the regulator should run before it is available for users who intend to store their assets to read. In addition, the regulator also wants the platforms to establish a framework that will involve how the wallets and storage systems will be designed, developed, and managed. The body also wants the companies to have a plan B in place regarding their storage systems in the case of unforeseen events or occurrences.

Firms have six months to comply

The regulator said that the requirements would require firms to lay down how they intend to achieve them, test them out and see that they are foolproof. Asides from that, the Thai SEC also mandated the companies to attach responsible personnel to oversee the procedures and report any occurrences to the relevant authorities immediately. A statement from the regulator said that companies must also carry out security audits in case of a future incident.

The announcement mentioned that the new regulations are already in effect, but companies will be given a grace of six months to ensure they comply with the directive. This latest directive comes from an earlier announcement where the Thai SEC said it would adopt stricter measures on companies and individuals in the crypto sector after the FTX mishap. The regulator went after its first offender at the beginning of the year. There were claims that the crypto exchange Zipmex has been offering crypto services without the required permission and registration.

The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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