The Securities and Exchange Commission (SEC) of Thailand has mandated digital asset providers to establish a digital wallet management system to ensure the safety of customers’ assets.
The SEC on Jan. 17 released three sets of requirements aimed at providing regulatory guidelines for digital asset providers/exchanges to establish an efficient digital wallet management system.
According to the SEC, digital asset providers are required to communicate with the commission on policies and guidelines it implemented for overseeing risk management and management of digital wallets.
Additionally, the crypto custodians are requested to outline the policies and procedures guiding the design, development and management of digital wallets. Proper information should also be provided on how private keys are created, maintained and accessed when needed.
Furthermore, digital asset providers are required to have clearly defined contingency plans in case of events that compromise their digital wallets and private keys.
The SEC added that a thorough securities audit and digital forensic investigation are necessary in case of a system breach, to curtail the loss on the exchange’s clients.
The SEC has mandated all digital asset providers in the region to fully comply with the regulation within six months, effective from Jan. 16, 2023.