Thailand’s Securities and Exchange Commission (SEC) issued new regulations on cryptocurrency custody services on Tuesday, aimed at improving investor protection.
Quick Facts:
The new regulations mandate that crypto custodians and providers of virtual asset services create backup plans for unforeseen events, including access control, risk management, and the maintenance of digital wallets.
Additionally, the SEC has demanded that cryptocurrency companies perform security audits and digital forensics investigations when customer assets are at risk.
Following the collapse of the cryptocurrency exchange FTX.com, located in the Bahamas, which cost investors billions of dollars, regulators across the world have been quickly moving to regulate the cryptocurrency industry.
After receiving criticism for failing to safeguard investors from Zipmex, an exchange that temporarily stopped allowing withdrawals in July of last year, Thailand banned cryptocurrency lending and staking services in September.
Crypto firms and custodians have been given a six-month grace period to comply with the new rules that went into effect on Monday.