The Thai SEC is seeking public input for newly proposed crypto custody regulations until late September.
The Securities and Exchange Commission (SEC) of Thailand continues introducing new laws for the cryptocurrency industry, citing investor safety considerations.
On Wednesday, the Thai SEC proposed a set of further regulations related to custody of buyers’ cryptocurrency holdings held by digital asset business operators. The newly proposed rules refer to the custody of fiat money for digital asset accounts as well as cryptocurrency lending or earning interest on crypto holdings.
The SEC is particularly trying to prohibit crypto companies from using investor assets for the “benefit of another client or other persons,” or seeking benefits from both investors’ fiat money and digital assets, including digital lending to different individuals. “Seeking benefits from purchasers’ fiat cash shall be prohibited besides within the type of deposit with industrial banks,” the proposal reads.
The new rules also suggest a new framework for the withdrawal and transfer of fiat money from digital asset accounts, requiring compliance with the rules of “decentralized approval authority, multi-sign approval authority, and check and balance.” In keeping with the regulator, the principles would strengthen investor safety and the reliability of crypto service suppliers, making certain that records of investors’ holdings are accurate and updated.
The SEC is now accepting public comments on newly proposed regulations until Sept. 22. The regulator didn’t instantly reply to for remark.
The Thai SEC has been actively introducing new crypto industry laws this year amid booming cryptocurrency adoption within the nation. In March, the authority proposed to impose a $32,000 minimal annual revenue requirement for investing in cryptocurrencies like Bitcoin (BTC). The regulator beforehand banned crypto exchanges from dealing with sure token types including non-fungible tokens in June