The SEC [Securities and Exchange Commission] of Thailand continues introducing new regulations for the crypto ecosystem, citing investor protection concerns.
Earlier on Wednesday, the Thai SEC proposed a group of additional regulations associated with custody of investors’ cryptocurrency holdings held by digital asset business operators. The newly proposed rules ask custody of fiat money for virtual asset accounts as well as cryptocurrency lending, or earning interest on cryptocurrency holdings.
The SEC is specifically looking to ban crypto firms from employing investor assets for the “benefit of another client or other persons,” or seeking benefits from both investors’ fiat money and virtual assets, along with digital lending to other persons. “Seeking benefits from clients’ fiat money shall be prohibited except within the sort of deposit with commercial banks,” the proposal outlines.
The new rules also propose a new framework for the withdrawal and transfer of fiat money from digital asset accounts, requiring compliance with the principles of “decentralized approval authority, multi-sign approval authority, and check and balance.” consistent with the regulator, the principles would strengthen investor protection and therefore the reliability of crypto service providers, ensuring that records of investors’ holdings are accurate and updated.
The SEC is now accepting public comments on newly proposed regulations until 22nd Sept.