Thai securities regulators now require crypto custodians to have contingency plans in case of unexpected events.

The Securities and Exchange Commission (SEC) of Thailand is working to better protect cryptocurrency investors by implementing new rules for cryptocurrency services.

On January 17, the Thai SEC issued rules requiring virtual asset service providers (VASPs) to set up a digital wallet management system to guarantee efficient custody The new rules target crypto custodians or VASPs that store crypto -Services will be provided.

The rules contain three key requirements, including providing policies and guidelines to oversee the risk management of digital wallets and private keys Under the rules, VASPs are required to communicate such policies with regulators and provide action plans to ensure compliance.

In addition, the SEC has requested crypto custodians to provide policies and procedures for the design, development and management of digital wallets and keys. The authority will also require crypto-custodians to have contingency plans in place in case of unexpected events that could affect the wallet management system.

“This includes configuring and testing work processes, naming responsible individuals, and reporting incidents,” the SEC said.

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“As well as auditing systems security, digital forensic investigations are also required in the event of any incident affecting the security of digital asset protection-related systems, which could have a significant impact on clients’ assets.”
According to the announcement, the new rules came into force on January 16, 2023. Cryptoguards are required to be fully compliant within six months of the effective date

Related: Binance for crypto storage with cold custody of institutions

Thailand’s SEC’s latest crypto rules are in line with the authority’s plans for more stringent crypto rules after the FTX collapse and other industry fiascos In early January, the authority reportedly launched a new investigation against local crypto exchange Zipmex, accusing the firm of offering digital asset fund management services

Source: CoinTelegraph