Thai SEC proposes new rules to digital asset custodians

The Securities and Exchange Commission of Thailand (SEC) continues to introduce new regulations for cryptocurrency, citing investor protection concerns.

On Wednesday, the Thai SEC proposed a set of additional regulations related to custody of investors' cryptocurrency holdings held by digital asset business operators. These new rules cover both custody of fiat money and cryptocurrency lending.

The SEC specifically wants to ban crypto companies from using investor funds for the "benefit or other clients or persons" or seeking benefits from both investors and digital assets. This includes digital lending to others. The proposal states that clients cannot seek benefits from their fiat money, except for depositing with commercial banks.

The new rules propose a new framework to allow withdrawals and transfers of fiat money from digital assets accounts. They require compliance with the principles "decentralized approval authority", multi-sign approval authority and check and balance. This will increase investor protection and ensure that investors' records are accurate and up-to date.

The SEC will now accept public comments on its proposed regulations up to Sept. 22. Cointelegraph did not receive a response to its request for comment.

The Thai SEC has been actively introducing new crypto industry regulations this year amid booming cryptocurrency adoption in the country. The authority proposed in March that a minimum income of $32,000 be required for investors in cryptocurrencies such as Bitcoin (BTC). The regulator previously banned crypto exchanges from handling certain token types including nonfungible tokens in June.