The Securities and Exchange Commission (SEC) of Thailand issued new rules for cryptocurrency custody services on Tuesday, in hopes of improving investor protection.
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- The new regulations require virtual asset service providers and crypto custodians to establish contingency plans for unforeseen circumstances, including access and risk management and maintenance of digital wallets.
- The SEC has also mandated crypto firms conduct security audits, as well as digital forensics investigations in cases where customer assets are impacted.
- Thailand’s moves come as regulators worldwide have been accelerating toward the cryptocurrency industry since investors lost billions of dollars to the collapse of the Bahamas-based cryptocurrency exchange, FTX.com.
- Thailand banned crypto lending and staking services in September after authorities were criticized for failing to protect investors from Zipmex, an exchange that temporarily suspended withdrawals last July.
- The new rules for crypto firms and custodians went into effect on Monday and companies have been given a six-month grace period to comply.
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