Thailand's SEC Proposes New Rules for Crypto Custodians

Thailand has been significantly increasing its regulation of crypto.

AccessTimeIconAug 25, 2021 at 12:39 p.m. UTC
Updated Sep 14, 2021 at 1:44 p.m. UTC

Thailand's Securities and Exchange Commission (SEC) has drafted new rules for custody of digital assets intended to strengthen investor protections, the SEC said in a statement.

  • The draft regulations look to prohibit crypto custodians from extracting benefits from their clients' assets. Under the rules, digital asset custodians can't use one client's assets for the benefit of someone else, nor can they use it for their own benefit, such as lending the digital assets for interest.
  • Crypto custodians could deposit a client's assets only at a commercial bank and would have to agree on the interest rate with their client.
  • Under the rules, the crypto custodians would have to close clients' accounts every business day to ensure that client assets are accounted for and not used for someone else's benefit.
  • Fiat deposits with crypto custodians should be protected just as digital assets are, using "decentralized approval authority, multi-sign approval authority and check and balance," the SEC said.
  • The draft rules are open for public comment until Sept. 22.
  • The Thai SEC has been very active in crypto in recent months: In June, it warned against decentralized finance (DeFi) and banned meme tokens and non-fungible tokens (NFTs), and in July, it filed a complaint against Binance, which is the world's largest crypto exchange.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.