Thai SEC proposes new rules for digital asset custodians

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

On Wednesday, the Thai SEC proposed a set of extra laws associated to custody of buyers’ cryptocurrency holdings held by digital asset enterprise operators. The newly proposed guidelines check 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 firms from utilizing investor property for the “advantage of one other shopper or different individuals,” or in search of advantages from each buyers’ fiat cash and digital property, together with digital lending to different individuals. “In search of advantages from purchasers’ fiat cash shall be prohibited besides within the type of deposit with industrial banks,” the proposal reads.

The brand new guidelines additionally suggest a brand 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 verify and steadiness.” In line with the regulator, the foundations 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 laws 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 laws this yr 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.