SEC Thailand proposed new amendments to the regulations on custody of clients’ assets in digital asset businesses to enhance investor protection
The Securities and Exchange Commission (SEC) is seeking public comments on the newly proposed crypto custody regulations, which includes keeping custody of fiat money and seeking benefits from the clients’ assets for the clients’ interest.
Accordingly, the records of investors’ assets under custody of the business operators must be accurate, complete and updated while the assets must be properly protected from relevant risks.
1) Custody of fiat money will be protected just like digital assets, complying with the principles for “decentralized approval authority, multi-sign approval authority, and check and balance”.
2) Crypto custodians are not allowed to use a client’s fiat money or digital assets for the benefit of another client, and clients’ assets shall be reconciled every business day to account for the clients’ assets and not used for another’s benefit.
3) Crypto custodians are not allowed to use a client’s fiat money or digital assets for their own benefit including lending for interest, except in the form of deposit with commercial banks, with an agreed interest rate not exceeding the actual rate receive from banks.
The draft rules are open for public comment until Sept. 22.
Propine is already in compliance with MAS regulations when we obtained our CMS licence early this year. At Propine, we are the first fully regulated and licensed independent digital asset custody provider and we ensure that all records of our investors’ assets are accurate, complete and updated while their assets are secured.
Our Fiat Custody and Escrow service works in conjunction with our regulated Digital Securities and Crypto Asset Management solutions. Through our Fiat custody and escrow services, your money will be kept safe with regulated banks globally while improving the convenience of interaction with your bank without having to leave our platform.