Thailand's Securities and Exchange Commission Proposes New Regulations for Cryptocurrency Custodians

The Securities and Exchange Commission (SEC) of Thailand has developed new regulations for digital asset custody in order to enhance investor safeguards, according to the SEC.

  • The proposed rules would make it illegal for crypto custodians to profit from their customers' assets. Digital asset custodians are prohibited from using one client's assets for the advantage of another, or for their personal profit, such as lending the digital assets for interest.
  • Crypto custodians could only deposit a client's assets with a commercial bank, and they'd have to agree on an interest rate with them.
  • Customer accounts would have to be closed every business day under the regulations to guarantee that client assets are accounted for and not exploited for the advantage of others.
  • The SEC recommended that fiat deposits with crypto custodians be safeguarded in the same way as digital assets are, with “decentralized approval authority, multi-sign approval authority, and check and balance,” according to the SEC.
  • The public may comment on the proposed regulations until September 22.
  • In recent months, the Thai Securities and Exchange Commission (SEC) has been extremely active in the crypto space: It issued a warning against decentralized financing (DeFi) in June and prohibited meme tokens and non-fungible tokens (NFTs), and it filed a complaint against Binance, the world's biggest cryptocurrency exchange, in July.

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