Thailand outlines regulatory rules for digital wallets

Thailand’s Securities and Exchange Commission (SEC) has put into effect a regulatory framework that outlines how customer digital assets should be handled by business operators that provide asset custody services.

According to the SEC, the provision of digital wallets and keys will be accompanied by clear guidelines for assessing the risks that come with this service. The regulations further outline that in order to ensure compliance, businesses must exercise strict internal controls and work supervision.

Another requirement covered in the regulatory framework affects the policies and procedures involved in designing, developing and managing digital wallets and keys, citing the need for appropriate security measures.

Businesses are now also required to have action plans at the ready in case of an event affecting the management system of digital wallets and keys. These will include testing different procedures, designating responsibility in such scenarios and setting up a forensic investigation team to handle any security breaches related to digital asset custody.

The framework was put into force on 16 January, with the SEC giving businesses six months from the effective date to fully comply with the regulations.

Thailand has been vocal with its intentions to modernise its financial ecosystem through digitalisation with the support of carefully selected international partners such as the UK.

Both governments recently signed a Memorandum of Understanding with the goal of driving each other’s fintech sectors forward.

Commenting on the news, Ruenvadee Suwanmongkol, Secretary-General of SEC Thailand, said: “We strongly believe that the new MoU with the UK Government will support the enhancement of the financial ecosystem as well as promote the development for inclusive and sustainable economic growth.”

Mark Gooding, His Majesty’s Ambassador to Thailand, added: “We are proud to take another step in our long-time partnership with SEC Thailand with a particular focus on the cutting edge of finance – fintech and sustainability.”