The Securities and Exchange Commission of Thailand (SEC) is working hard to create new legislation for Bitcoin custody services in order to offer cryptocurrency investors greater safety.
The Thai Securities and Exchange Commission (SEC), published new guidelines January 17. These require virtual asset service provider (VASPs), to develop a digital portfolio management system to protect virtual assets.
The new restrictions apply to crypto custodians also known as VASPs. These are companies that provide services for the safe storage of cryptocurrency.
The laws require that guidelines and policies be developed to manage the risks associated with digital wallets and private key management. These regulations call for the development and implementation of policies and guidelines. This is one condition that must be fulfilled according to the rules.
VASPs have a duty to inform authorities of such policies and to offer plans for compliance. This is essential to make sure that VASPs do not violate the law.
The SEC also asked cryptocurrency custodians to explain their plans and procedures in establishing digital wallets, keys, and preserving them and managing them.
In the event of an unplanned incident, the authority will require crypto custodians create backup plans. The authority will implement its wallet management system.
The time period that cryptocurrency custodians have been given to comply with the regulations is six months. It begins on the date that the regulation goes into effect.
The most recent crypto laws of the Securities and Exchange Commission of Thailand align with their objectives to enact stronger crypto restrictions following industry failures, such as the collapse of FTX. These goals were set up in response to efforts by the Securities and Exchange Commission of Thailand to enact stricter crypto restrictions.
According to reports, the government opened an investigation into Zipmex’s local cryptocurrency exchange at the start of January. According to government reports, the agency alleged that it had illegally offered services related to digital asset fund administration.