Thailand’s Securities and Exchange Commission (SEC) has mandated digital asset providers to establish a digital wallet management system to ensure the safety of their customers’ assets.
The SEC announced on January 17th that three sets of requirements It aims to provide regulatory guidelines to digital asset providers/exchanges in order to establish an efficient digital wallet management system.
According to the SEC, digital asset providers are required to communicate with the Commission about policies and guidelines implemented to oversee digital wallet risk management and controls.
In addition, crypto administrators should outline the policies and procedures that guide the design, development, and management of digital wallets. Adequate information must also be provided on how to create, maintain, and, if necessary, access private keys.
Additionally, digital asset providers should have well-defined contingency plans in place in case their digital wallets and private keys are compromised.
To contain losses for exchange customers, the SEC added that thorough securities audits and digital forensics investigations are needed in the event of a system breach.
The SEC requires all digital asset providers in the region to be fully compliant with the regulation within six months from January 16, 2023.
