The Securities and Exchange Commission of Thailand (SEC) has proposed additional rules to enhance protection for digital asset investors and to close any legal loopholes that may expose investors’ assets to risk.
According to the SEC, the new rules are aimed at preventing any digital asset businesses from misappropriating their clients’ assets for the benefit of other customers or people, or for any objectives other than bank deposits.
The new rules will require digital asset businesses to deposit the client’s fiat money with commercial banks or other banks established by specific laws and clearly state in the deposit account that it is operated by digital asset operators for the benefit of clients only.
Digital asset businesses will also be required to develop an encrypted automated system, which allows customers to ask the operators to withdraw or transfer the assets on command and ensure that the accounts cannot be accessed by others. In addition, the accounts opened must also comply with the principles for decentralized approval authority, multi-sign approval authority and check and balance, in a similar manner to custody of digital assets. (NNT)
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