On Oct. 7, Thai SEC issued four rules for digital asset businesses.
Thai SEC issued announcements re digital asset businesses, including Notice regarding determination of the paid-up registered capital of license applicants and licensees.
Criteria, conditions and methods for operating a digital asset business; Calculation and preparation of the fund calculation report; and Procedures for insufficient capital.
Follows Thai SEC Mar. 2024 drafted rules on digital asset capital maintenance, #203700
Also follows Thai SEC Aug. 2022 revised digital asset rules, and procedures, #147645.
Document dated Oct. 7, 2024, received from Thai SEC Oct. 15, summarized on Oct. 17.
Paid-Up Capital
Defines different types of digital asset businesses, including cryptocurrency and digital token exchanges, brokers, dealers, fund managers, advisors, custody service providers.
Sets different capital requirements for each type of business, depending on whether the business holds custody of client assets and the types of investors they serve.
Businesses that already hold licenses must meet new capital requirements by Nov. 1.
Criteria, Conditions and Methods
Introduces strict rules for how digital asset businesses must store customer assets.
Use of cold wallets to enhance security, reduce risk of theft or loss due to cyberattacks.
Outlines the conditions under which businesses can transfer assets between cold wallets and hot wallets, which are connected to the internet for operational purposes.
Fund Calculation Report
Modifies the requirements for the calculation and reporting of net liquid funds.
Specifies the consequences for businesses that fail to meet capital requirements.
Insufficient Capital
Details actions that businesses must take if they fall short of their capital requirements.
Actions are categorized by four different methods; NC-1, NC-2, NC-3, and NC-4.
These outline the steps businesses must take, including halting certain operations, informing clients, and potentially transferring client assets to another manager.
Effectiveness
These notices shall come into force from Nov. 1, 2024 onwards.
