Previously, the SEC conducted a public hearing on the proposed principles for amending capital rules for digital asset operators, including capital requirements for securities and derivatives business operators engaging in digital asset activities. The comments and recommendations provided by respondents have been considered in the review of the proposed principles.  

The SEC is therefore conducting this hearing on the draft regulations and relevant attachments concerning capital requirements for securities and derivatives business operators (“business operators”) involved in digital asset businesses in the categories of digital asset exchange, broker and dealer. This is to ensure consistency with the rules governing digital asset operators not engaging in securities or derivatives business operators*. The key points of the draft regulations are as follows:

  (1) To revise the minimum capital requirement to support digital asset business operations. This includes revising the net capital (NC)** requirement for assets held in hot wallets and cold wallets to align with the proportions and sources of digital asset custody for clients. Additionally, there would be NC requirement for digital asset trading service risk;

(2) To revise the criteria for suspending digital asset business operations by requiring businesses that fail to maintain the capital to submit a rectification plan to the SEC and execute the plan. This includes limiting business operations to avoid additional risks. If a business operator fails to submit or execute the plan within the specified timeframe, or if the NC falls below 60 percent of the minimum requirement for five consecutive days, the business operator must suspend its digital asset operations, inform the clients and follow the SEC's orders to rectify the situation;

  (3) To revise other relevant criteria such as capital maintenance through alternative channels such as insurance policies or digital assets of the same type as clients' (same coin), and the timeframe for submitting reports on net capital calculations, etc. 

The consultation paper is available at: https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=986  and the legal hub at: https://law.go.th/listeningDetail?survey_id=Mzc1MURHQV9MQVdfRlJPTlRFTkQ= . Stakeholders and Interested parties are welcome to submit comments and recommendations via the websites or emails: bhumipisuth@sec.or.th, sawarin@sec.or.th and arthipha@sec.or.th. The public hearing ends on 27 May 2024. 

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Remarks: 

* The SEC has conducted a public hearing on draft regulations and relevant documentation regarding capital requirements for digital asset operators not engaging in securities or derivatives businesses.

** NC calculation is based on liquid assets deducted by total liabilities and risk haircuts.