Thai SEC Issues Rules on Management of Digital Wallets for Crypto Custody Providers

Thai SEC issues rules on the management of digital wallets for crypto custody providers. The regulations require digital asset business operators that provide custody of clients’ digital assets to establish a digital wallet management system to accommodate efficient custody of digital assets and keys and ensure safety of clients’ assets.

The regulations also include the provision of policy and guidelines for overseeing the risk management of digital wallets and private keys. The rules require crypto custody providers to communicate with regulators regarding such policies and provide action plans to ensure compliance.

Additionally, the SEC requested crypto custodians to provide policy and procedures for design, development, and management of digital wallets and keys. The crypto custody provider also needs to establish a contingency plan in case of occurrence of various unforeseen events that may affect the wallet management system.