Thailand Announces New Rules for Cryptocurrencies in Custody

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Thailand’s Securities and Exchange Commission (SEC) has published new rules regarding cryptocurrencies that are kept in custody.

The regulator stated that businesses providing cryptocurrency custody services must now “create a digital wallet management system to enable efficient custody of digital assets and keys and assure safety of customers’ assets.”

Tuesday saw the publication of new regulations by Thailand’s Securities and Exchange Commission (SEC) regarding the “administration of digital wallets for custody of digital assets and keys.” The new rules were effective on January 16.

According to the Thai SEC, companies that offer custody services for customers’ digital assets must: Create a digital wallet management system to support effective custody of digital assets and keys and guarantee the security of customers’ assets.

Additionally, the SEC stated that they needed to have a “policy and guidelines” for the administration of “digital wallets and keys” in addition to “communication to define such policy, action plans and procedures, work supervision, and internal control to assure compliance with the policy.”

A “policy and procedures for designing, developing, and administering digital wallets as well as creating, preserving, and accessing keys or other associated information responsibly, securely, and safely” must also be developed by the enterprises, according to the regulator.

In addition, according to the Thai SEC, cryptocurrency custody service providers need to set up a “contingency strategy in case of occurrence of any event that may impair the management system of digital wallets and keys.”

In the event of any incident affecting the security of systems associated to the custody of digital assets, which could have a substantial impact on the assets of customers, a system security audit and a digital forensic investigation are also necessary.

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