The Securities and Exchange Commission (SEC) of Thailand issued new rules for cryptocurrency custody services on Tuesday, in hopes of improving investor protection.

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Fast facts

• The new regulations require virtual asset service providers and crypto custodians to establish contingency plans for unforeseen circumstances, including access and risk management and maintenance of digital wallets.

• The SEC has also mandated crypto firms conduct security audits, as well as digital forensics investigations in cases where customer assets are impacted.

• Thailand’s moves come as regulators worldwide have been accelerating toward the cryptocurrency industry since investors lost billions of dollars to the collapse of the Bahamas-based cryptocurrency exchange, FTX.com.

• Thailand banned crypto lending and staking services in September after authorities were criticized for failing to protect investors from Zipmex, an exchange that temporarily suspended withdrawals last July.

• The new rules for crypto firms and custodians went into effect on Monday and companies have been given a six-month grace period to comply.

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