New crypto rules issued by the Securities and Exchange Commission (SEC) Thailand
The SEC recently issued a new regulation requiring Virtual Asset Service Providers (VASP) that provide crypto storage to establish a digital wallet management system. Specifically, it requires VASPs to manage the risks of digital wallets and private keys, create a public-private communication channel, and conduct system security audits and a digital forensic investigation in case of a breach. Custodians must comply with this regulation within six months from January 16, 2023.
By 2022, Thailand had 21 fully regulated digital asset operators. After a volume surge of almost 600% in 2021, Thailand now has the most cryptocurrency users in the world (20.1%), higher than fellow ASEAN countries like the Philippines (19.4%) and Indonesia (16.4%). Thailand also has the highest in using cryptocurrencies for payment in ASEAN (85%), followed by Vietnam (79%) Philippines (72%) and Indonesia (70%). However, the central bank bans the use of crypto as a means of payment since March 2022. SEC regulates cryptocurrencies under the 2018 Emergency Decree on Digital Asset Businesses.