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Thai SEC proposes new rules for digital asset custodians

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The Securities and Trade Fee (SEC) of Thailand continues introducing new rules for the cryptocurrency trade, citing investor safety issues.

On Wednesday, the Thai SEC proposed a set of further rules associated to custody of buyers’ cryptocurrency holdings held by digital asset enterprise operators. The newly proposed rules discuss with custody of fiat cash for digital asset accounts in addition to cryptocurrency lending, or incomes curiosity on crypto holdings.

The SEC is particularly trying to prohibit crypto corporations from utilizing investor belongings for the “benefit of another client or other persons,” or in search of advantages from each buyers’ fiat cash and digital belongings, together with digital lending to different individuals. “Seeking benefits from clients’ fiat money shall be prohibited except in the form of deposit with commercial banks,” the proposal reads.

The new rules additionally suggest a new framework for the withdrawal and switch of fiat cash from digital asset accounts, requiring compliance with the ideas of “decentralized approval authority, multi-sign approval authority, and check and balance.” In line with the regulator, the rules would strengthen investor safety and the reliability of crypto service suppliers, guaranteeing that data of buyers’ holdings are correct and up to date.

Associated: Thailand’s central financial institution warns towards utilizing digital currencies for funds

The SEC is now accepting public feedback on newly proposed rules till Sept. 22. The regulator didn’t instantly reply to Cointelegraph’s request for remark.

The Thai SEC has been actively introducing new crypto trade rules this 12 months amid booming cryptocurrency adoption within the nation. In March, the authority proposed to impose a $32,000 minimal annual earnings requirement for investing in cryptocurrencies like Bitcoin (BTC). The regulator beforehand banned crypto exchanges from dealing with sure token sorts together with nonfungible tokens in June.

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