Thailand tightens digital assets custody rules to protect investors against fraud and misappropriation of assets
Just like Singapore, Thailand is one of the countries in Southeast Asia to first regulate digital assets. With a more liberal and progressive stance towards cryptocurrencies, the regulations have since evolved into a more sophisticated framework, although some of the recent restrictions issued by SEC have sparked public outrage.
It was only a month ago that Thailand’s finance ministry backpedalled on their plans to tax #crypto gains due to mounting opposition for the proposed legislation. As a result, traders are allowed to offset their annual losses against gains made in the same year while crypto exchanges and other digital asset platforms that facilitate crypto transactions have been exempted from the capital gains tax.
Effective 1 Mar 2022, SEC has made three primary changes to the digital asset custody regulations.
1. Withdrawal or transfer of fiat money from the accounts opened for the benefit of clients shall comply with the principles for decentralized approval authority, multi-sign approval authority, and check and balance.
2. The use of a client’s assets, fiat money and digital assets for the benefit of another client or any other persons shall be prohibited and clients’ assets shall be reconciled every business day to ensure accurate and updated records of clients’ assets; and
3. Seeking benefits from clients’ fiat money shall be prohibited except in the form of deposit with commercial bank(s). In the case of digital assets, seeking benefits for clients shall be prohibited, including deposit and lending to other persons, except in the form of digital asset investment with licensed digital asset fund managers.
With such progress and openness in its crypto regulations, Thailand may just be scaling its position to be one of the most crypto friendly countries in Southeast Asia, and one that might just give them an edge over its competitors.
Full report here: https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=9337