SEC Thailand Issued New Regulations For Digital Asset Businesses
19 Jan 2020 — According to a recent article in Lexology by Baker McKenzie, the Securities and Exchange Commission, Thailand (SEC) and the Ministry of Finance have issued a new set of regulations regarding digital asset businesses including the designation of new types of digital asset businesses to be regulated, and the specification of additional and revised requirements for its business operators such as the custody of #digitalassets.
On the latter, operators are required to keep min. 90% of total value of their clients’ assets in cold wallet.
Also, if the operator holds the clients’ assets of min USD 0.5 Million for a duration of 5 consecutive days, the operator must engage a qualified independent digital asset custodian to safe keep the assets, albeit the operators may still keep max. 10% of the clients’ total assets in its own cold wallet.
Business operators must engage a regulated and experienced digital asset custodian, satisfying the qualifications as prescribed by the SEC. SEC is currently considering introducing custodian licensing scheme in Thailand at a later stage, and qualified custodians may be offshore entities as well.