Thai Securities Regulator Seeks to Ban Crypto Custodians From Lending Clients’ Assets
Thailand’s Securities and Exchange Commission (SEC) has put forward amendments to the rules governing the operations of crypto custodians. The regulator is now seeking opinions on the proposals which aim to improve investor protection for those who keep money in digital assets.
Securities Commission Begins Public Discussions on New Crypto Regulations in Thailand
Emphasizing its policy of strengthening oversight of the country’s digital asset industry, the Thai securities watchdog has launched public consultations on proposed changes to the regulatory framework pertaining to the custody of clients’ assets including cryptocurrencies. Noting its goal is to ensure businesses provide quality services and adequate protection for investors, the SEC elaborated:
This means the records of investors’ assets under custody of the business operators must be accurate, complete and updated while the assets must be properly protected from relevant risks.
To achieve its goal, the commission has prepared additional regulations for providers of crypto custodian services. The amendments require these platforms to “comply with the principles for decentralized approval authority, multi-sign approval authority, and check and balance” in regards to the custody of both digital assets and fiat money.
The regulator further offers to prohibit the use of their customers’ funds for the benefit of another client or other persons. “Clients’ assets shall be reconciled every business day to ensure accurate and updated records,” the SEC stressed.
Thailand’s Securities and Exchange Commission wants to ban operators from “seeking benefits from clients’ fiat money,” except through deposits with commercial banks, in which case they may agree with customers on an interest rate not exceeding the one provided by the bank. However, the watchdog insisted:
In case of digital assets, seeking benefits for clients shall be prohibited, including in the form of digital asset lending to other persons.
The SEC has published a consultation paper on the amendments, inviting stakeholders and other interested parties to send their comments and suggestions by Sept. 22, when the public hearing ends. The regulator noted that crypto custody businesses will have to comply with the new regulations within a month after their final adoption.
What’s your opinion about the proposed regulatory changes regarding crypto custody services in Thailand? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
