Thailand's Securities and Exchange Commission (SEC) is proposing new rules for digital asset firms in order to bolster investor protection, including requiring them to deposit clients’ fiat money with banks.
The firms will also have to develop an encrypted automated system that allows customers to withdraw or transfer the digital assets on command, and to ensure clients’ accounts cannot be accessed by others. The accounts must also comply with the principles of decentralised approval authority, multi-sign approval authority, and check and balance.
"The proposed amendments aim to enhance the quality and reliability of the digital asset business operators as well as to strengthen investor protection, while taking into account the cost and benefit in order to avoid excessive costs and obstacles to business operations of digital asset business operators," the SEC says in a statement on August 26.
The regulator is seeking public feedback on the draft proposals until September 22.
Businesses must comply with the new rules within a month of the effective date once they come into force.