Key Takeaways
- Thailand SEC releases new crypto regulation proposals
- The proposal seeks to limit the activities of crypto custodial service providers
- New regulations follow the recent trends from the Financial regulator
The Thailand SEC revealed a set of draft regulations on August 25 that intends to tighten existing regulations. According to the statement, the rules are intended to protect investors from taking heavy losses.
The new laws focus mainly on crypto custodial services. Crypto-assets custodians will no longer be allowed to use clients’ digital assets for additional benefits. This includes lending stored crypto-assets for interests or investing crypto assets. They can only deposit clients’ assets at a commercial bank and would be required to get prior approval from their client.
To enforce the new rules, the SEC will mandate all digital assets to close clients’ accounts every business day and perform daily audits. This would ensure that assets are not used for other purposes.
In addition, crypto custodians that hold fiat deposits will be required to follow the same regulations as digital assets. This includes integrating multi-sign approval and decentralized approval systems.
The regulations have been made available for public consultation and will be reviewed by September 22. Thailand has been active in regulating the crypto industry with recent changes to its crypto laws in recent months.
The Thai SEC banned meme tokens like dogecoin and NFTs in June and also issued warnings against decentralized finance. In July the financial regulator filed a complaint against the activities of Binance the world’s largest exchange.
It will be interesting to see how the public and the crypto community react to this latest draft regulation proposal. It is highly unlikely that crypto custodial services will agree to the new laws and there could be significant changes made in the future.
What are your thoughts on Thailand’s new crypto draft regulations?
