The Securities and Exchange Commission (SEC) of Thailand continues
introducing new regulations for the cryptocurrency industry, 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. The
newly proposed rules refer to custody of fiat money for digital asset
accounts as well as cryptocurrency lending, or earning interest on
crypto holdings.
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.
“Seeking benefits from clients’ fiat money shall be prohibited except in
the form of deposit with commercial banks,” the proposal reads.
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.
Related: Thailand's central bank warns against using digital currencies for payments
The
SEC is now accepting public comments on newly proposed regulations
until Sept. 22. The regulator did not immediately respond to
Cointelegraph’s request for comment.
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). The regulator previously banned crypto exchanges from handling certain token types including nonfungible tokens in June.
source link : https://cointelegraph.com/news/thai-sec-proposes-new-rules-for-digital-asset-custodians
