Thailand’s SEC has issued new regulations on crypto protection. Companies that want to provide crypto custodian services are required to build a digital wallet management system. This new system will have the capacity to handle digital assets and will have keys to ensure the security of customer assets. This reduces risk for crypto investors who rely on companies to hold their assets.
Thailand’s new rules
The regulations issued by Thailand’s SEC went into effect on January 16 and address how digital assets should be managed by companies. That’s where a digital wallet management system comes in to ensure that customer assets are safe.
The SEC states that businesses must have policies and procedures in place to manage digital wallets and keys, as well as a plan to communicate these policies and procedures to employees, monitor their performance, and ensure compliance. They must also develop a plan to design, develop, and manage digital wallets in a safe and secure manner, and to create, maintain, and access related keys or data.
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In addition, Thailand’s SEC stated that crypto custodian service providers must have contingency plans in place for any incident that may affect the management of digital wallets and keys, including assigning responsible individuals and reporting the incident.
SEC officials have required crypto custodian service providers to conduct regular audits of system security and conduct digital forensic investigations in the event of security breaches that could significantly impact clients’ assets.
The importance of customer protection in crypto
The importance of customer protection is critical in the crypto industry as digital assets are vulnerable to hacking and theft. Customers need to trust that their assets are safe and secure when they settle with a crypto escrow service provider.
As a result, regulatory bodies such as the SEC have issued guidelines and regulations to ensure that crypto custodian service providers have the necessary security measures to protect their clients’ assets. This includes policies and procedures for managing digital wallets and keys, as well as contingency plans for security breaches and regular security audits.
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Also read: FTX secretly sent $50 million to a Bahamian bank through another company.
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