Bangkok, 2 December 2021 – The Securities and Exchange Commission (SEC) is seeking public comments on the drafted regulations for the supervision of digital asset custodial wallet providers and the provision of services to customers’ wallets as well as the drafted amendment to the regulations for custody of customers’ assets, to ensure proper, standardized and effective supervision of digital asset businesses, and prevent misuse of digital assets as a tool for committing a crime.
Earlier on 1 July 2021, the SEC Board Meeting No. 13/2564 passed a resolution approving a review on the digital asset business regulations to specify digital asset custodial wallet provider as a digital asset business that would be required to apply for a license. The SEC later conducted a public hearing on a proposal to revise the regulations in this matter to ensure safe and standardized digital asset custody. The proposal also aimed to determine requirements for digital asset business operators who function as a digital wallet provider to prevent misuse of digital assets as a tool for committing a crime.
The SEC has drafted relevant regulations by taking into consideration the comments and recommendations received from business operators and the general public concerning the aforementioned proposal. The drafted regulations specify digital asset custodial wallet provider as a digital asset business which is required to apply for a license, and prescribe provisions on supervision of digital asset business operators who provide services to customers’ wallets. Essentially, the drafted regulations:
(1) Specify digital asset custodial wallet provider as a digital asset business that is required to apply for a license, obtain the qualifications and comply with the governing regulations before providing the service; and
(2) Require digital asset custodial wallet providers and digital asset business operators who obtain a relevant license and provide custody for customers’ digital assets to establish a wallet management system and a key management system for digital wallet management, and require the service users to disclose information on their digital asset wallets for the purpose of identifying the account owner.
In addition, on 4 November 2021, the SEC Board Meeting No. 17/2564 passed a resolution approving in principle the amendment to the regulations for custody of customers’ assets to be imposed on both digital asset business operators and digital asset custodial wallet providers. Currently, the Notification of the Securities and Exchange Commission No. Kor Thor. 19/2561 Re: Rules, Conditions and Procedures for Undertaking Digital Asset Businesses is being revised to incorporate the aforesaid amendment.
The consultation paper is available at https://www.sec.or.th/hearing. Stakeholders and interested parties are welcome to submit comments and recommendations via the website or email: sarochat@sec.or.th bhumipisuth@sec.or.th or napaporng@sec.or.th. The public hearing ends on 31 December 2021.
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