The Securities and Exchange Commission (SEC) of Thailand has proposed new amendments to the regulations on cryptocurrency custodian. According to an official press release, the amendments aim to "enhance protection for digital asset investors." The regulator particularly wants to prohibit custodians to use clients' fiat funds for the benefit of other persons.
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"Custody of fiat money and digital assets: the use of a client’s assets for the benefit of another client or other persons shall be prohibited and clients’ assets shall be reconciled every business day to ensure accurate and updated records of clients’ assets," the Thai SEC said.
The only exception — deposit with commercial banks. However, custodians and clients should agree on an interest rate not exceeding the actual rate the business operators receive from the commercial banks, the watchdog added. The public hearing will end on Sept. 22, 2021.
The tightening comes after the SEC banned local crypto exchanges from trading meme cryptos such as dogecoin (DOGE), fan tokens and collectibles based on non-fungible tokens (NFTs). The country's SEC secretary general, Ruenvadee Suwanmongkol, said that the regulator prepared a guide for crypto exchanges outlining the types of digital assets whose trading is no longer allowed.
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