Thailand SEC Issues Regulations for Crypto Custody Providers by Coindesk

The regulator says custodians should have a contingency plan if something goes wrong

Thailand’s Securities and Exchange Commission has issued regulations for crypto custody providers to establish a digital wallet-management system to ensure the safety of customers’ assets, according to a press release on Tuesday.

The regulations, which took effect on Monday, offer policies and guidelines for overseeing the management of digital wallets and keys plus procedures for designing digital wallets. The regulation also says custodians need to have a contingency plan in case an event occurs that could affect the management system of digital wallets and keys.

Thailand’s financial regulator has been clamping down on the crypto industry lately. In September, it banned crypto firms from offering staking and lending services and established stricter crypto advertising rules.

Regulators around the world have been toughening up their crypto stance following the collapse of crypto exchange FTX which filed for bankruptcy in November.