Thailand SEC Issues New Crypto Regulations Aiming at Improving Investors’ Protection
The Thailand regulators have announced new regulations for crypto service providers. The announcement strives to pave the way for Thai crypto adoption and safeguard consumers from “bad actors.”
On January 16, the Thai SEC regulators issued a press release to Thai crypto fans. The report focused on three major requirements effective from January 16.
New Crypto Regulation in Thailand
The Thai regulators urged all the crypto business operators to comply with the proposed requirements. Correspondingly, new entrants in the crypto space were given six months to comply with the new rules.
According to the SEC announcement, Thai crypto traders must install the digital wallet management system (DWMS). The desired system will improve the storage of the crypto asset by safeguarding the safety of digital wallets, account keys, and user investment on the crypto platform.
The SEC also tasks the providers of digital assets to develop risk management policies and procedures. The policies should capture key risk management elements such as internal control and workplace supervision and develop actionable plans.
Additionally, the SEC requires the providers to communicate the policies and procedures to uphold conformity with the regulation.
As per the report, regulators demonstrate resolute efforts in monitoring digital assets policies. The SEC requires crypto developers to create policies and procedures for managing, creating, and controlling virtual assets and system keys. This will improve the safety and security of the digital asset.
Moreover, digital providers must create a contingency plan to mitigate unforeseen circumstances. The plan should clearly define system security audit, action plans, forensic probe, and duties and responsibilities of the system management team.
Involvement of Thai SEC in Crypto Regulations
The collapse of the embattled FTX that dragged other crypto markets players such as Celsius Network, TerraUSD, and Thai-based crypto exchange Zipmex to liquidity woes influenced the Thai SEC regulators to tighten crypto regulation.
In December 2022, the SEC announced four key areas to focus on in the next trading year. The main areas highlighted by the SEC were investors’ protection, cybersecurity, and protection from unlawful business practices.
Presently, Thai regulators are investigating the operation of Zipmex after realizing that the firm has been providing some crypto services without acquiring legal permission.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
