The Securities and Exchange Commission of Thailand (Thai SEC) has introduced new regulations for the cryptocurrency industry, citing investor protection concerns.
It has been reported that the Thai SEC proposed a set of additional regulations related to custody of investors' 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.
However, the SEC is specifically looking 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 other persons.
The proposal read:
“Seeking benefits from clients’ fiat money shall be prohibited except in the form of deposit with commercial banks.”
The report said that the new rules also propose a new framework for the withdrawal and transfer of fiat money from digital asset accounts, requiring compliance with the principles of “decentralized approval authority, multi-sign approval authority, and check and balance.”
According to the regulator, the rules would strengthen investor protection and the reliability of crypto service providers, ensuring that records of investors’ holdings are accurate and updated. The SEC is now accepting public comments on newly proposed regulations until September 22.
Likewise, the Thai SEC has been actively introducing new crypto industry regulations this year amid booming cryptocurrency adoption in the country. In March, the authority proposed to impose a $32,000 minimum annual income requirement for investing in cryptocurrencies like Bitcoin (BTC).
Thus, the regulator previously banned crypto exchanges from handling certain token types including non-fungible tokens (NFTs) in June.