The SEC has recently amended regulations for digital asset business operators, which will come into effect on July 16, 2024. These amendments include requirements for maintaining custody records of client funds and assets, as well as documenting fund management activities.
The Securities and Exchange Commission (SEC) has issued amendments to the regulations regarding record keeping of digital asset business operators (DA operators), effective from 16 July 2024. The amendments aim to ensure that DA operators provide information that is accurate, complete and updated, enabling effective and timely monitoring and supervision as well as enhancing trust and confidence in Thailand’s digital asset business sector.
In May 2024, the SEC conducted a public hearing on the proposed amendments to the regulations governing the management and storage of data related to digital asset business operations with the objectives of ensuring accurate and adequate information for effective and timely monitoring and supervision of operational risk of DA operators, and enhancing trust and confidence of stakeholders. Most respondents agreed with the principles and the proposed amendments to such regulations. The SEC has therefore issued the amendments* with the key points as follows:
(1) DA operators are required to keep records related to the custody of client fund issued by the custodial bank, and records related to the custody of client digital assets issued by digital asset custodians permitted to provide such services legally; and
(2) DA fund managers are required to keep documentation of their activities related to digital asset fund management, including documentation regarding consideration and decision making on digital asset investment activities.
Additionally, DA operators are required to retain the accurate, complete and updated records mentioned above for at least five years from the date of such operations, with the requirement that during the first two years, the records must be stored in a format that is readily accessible for the SEC’s review or inspection.
The Notification concerning the amendments has been published in the Government Gazette and has become effective since 16 July 2024.
