Thailand’s Securities and Exchange Commission (SEC) continues to introduce new cryptocurrency regulations, citing investor protection concerns.
The Thai Securities and Exchange Commission (SEC) proposed new regulations on Wednesday. Concerning the custody of investors’ cryptocurrency holdings by digital asset business operators. The newly proposed rules cover fiat money custody for digital asset accounts, cryptocurrency lending, and earning interest on crypto holdings.
The SEC wants to make it illegal for crypto companies to use investor funds for the “benefit of another client or other persons”. Or to profit from both fiat and digital assets, including digital lending to third parties. The proposal states that “seeking benefits from clients’ fiat money shall be prohibited except in the form of deposit with commercial banks”.
The new rules also propose a new framework for withdrawing and transferring fiat money from digital asset accounts. Requiring adherence to “decentralized approval authority, multi-sign approval authority, and check and balance”. principles. The rules, according to the regulator, would improve investor protection and the trustworthiness of crypto service providers by ensuring that records of investors’ holdings are accurate and up to date.
The Securities and Exchange Commission (SEC) is now accepting public comments on newly proposed regulations until September 22. The regulator did not immediately respond to a request for comment from Cointelegraph.
The Thai Securities and Exchange Commission (SEC) has been actively introducing new crypto industry regulations this year. Despite the country’s booming cryptocurrency adoption. The authority proposed in March to set a minimum annual income requirement of $32,000 for investing in cryptocurrencies such as Bitcoin (BTC). In June, the regulator prohibited crypto exchanges from dealing with certain token types, including non-fungible tokens.