The Securities and Exchange Commission (SEC) has added digital asset custodian as a business under its supervision to standardise preservation of digital assets and increase investor protection.
The move is in response to the Finance Ministry's announcement that came into effect on July 13, describing a digital asset custodian as keeping digital assets in custody, as well as management services of encryption of cryptographic keys or related services that are required to be confidential for approval of any transfers or transactions related to the digital assets, with full or partial authorisation.
New service providers that wish to apply for a licence can file an application with the SEC, while existing operators must apply for a licence by Oct 11, 90 days from July 13.
The digital asset custodian must be a securities company, commercial bank, financial institution prescribed by the SEC, a securities depository established under the Securities and Exchange Act, or a newly established company not holding any other digital asset business licence.
Digital asset custodians must pay a licence fee of 1 million baht to the ministry.
"This notice establishes the rules for businesses providing digital asset depository services to ensure investors they are standardised for their benefits," the SEC said in a statement.
"The criteria have been published in the Royal Gazette and are effective from Sept 16 this year."
Such services do not include those that are part of operations for a digital asset exchange centre.
Digital asset brokers, traders and money managers must provide services in the manner prescribed by the SEC in its notification.
