The Securities and Exchange Commission (SEC) of Thailand releases new regulations mandating virtual asset service providers (VASP) to build a digital wallet management system to accommodate efficient custody of digital assets and keys and assure client asset safety.
The new regulations require digital asset custodians to provide policies and procedures for controlling how private keys and digital wallets’ risk are managed.
These VASPs must inform authorities about such policies and present action plans to guarantee compliance.
The crypto custodians should also provide policies and procedures for designing, developing and managing digital wallets, and creating, maintaining, and accessing keys, or other related information in a secure, and safe manner.
VASPs should also develop a contingency plan in case of the occurrence of any event that could affect the management system of digital wallets and keys.
“An audit of system security is also required as well as a digital forensic investigation in case of any event affecting the security of systems related to digital asset custody, which could cause significant impacts on clients’ assets,” the SEC notes.
The statement mentions that the new rules have become effective since January 16, 2023. Cryptocurrency custodians must completely comply within six months of the rules taking effect.
Since the FTX implosion regulators around the world are trying to implement proper regulations to prevent such unfortunate events. The Japanese regulators have urged international regulators to approach cryptocurrency in the same manner that they regard banks, pushing for more strict regulations for the industry.
