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SEC public hearing on proposed revision to supervision of digital asset custodial wallet providers



Tuesday 27 December 2022 | No. 240 / 2022


Bangkok, 27 December 2022 – The Securities and Exchange Commission, Thailand (SEC) is seeking public comments on a proposed revision to the principles for supervising digital asset (DA) custodial wallet providers. This would involve an exemption from the definition as DA Custodial Wallet Provider for DA issuers who provide custodial service on self-issued DA for their clients. The proposed revision would also require investment token issuers who provide custody and deposit service on self-issued DA to establish a system segregating their clients’ DA from their own assets, and would prohibit them from seeking benefits from the clients’ DA under their custody.

Pursuant to the Ministerial Notification concerning Approval for Undertaking of Digital Asset Businesses, effective since 13 July 2022, DA custodial wallet provider is required to obtain a DA business license before providing the custodial wallet. In this regard, the definition of DA Custodial Wallet Provider may cover deposit or custodial service for all types of DA, including such deposit or custody without the objective of custodial service business as in the case of DA issuers who provide custody of self-issued DA to their clients. 

The SEC therefore views it is appropriate to revise the principles for supervising DA custodial wallet providers. In this regard, on 10 November 2022, the SEC Board Meeting No. 15/2565 passed a resolution approving the proposed revision to the principles whereby an exemption from the definition as DA Custodial Wallet Provider would be given to DA issuers who provide custody of self-issued DA for their clients, in line with the intent to supervise DA custodial wallet providers. In addition, investment token issuers who provide deposit and custodial service on self-issued investment tokens would be required to establish a system or mechanism for clearly segregating DA of their clients from their own assets. Additionally, investment token issuers would be prohibited from seeking benefits from their clients’ DA under custody.  

The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=860 . Stakeholders and interested parties are welcome to submit comments and suggestions through the website or email: thanapatk@sec.or.th or korpsak@sec.or.th or napaporng@sec.or.th. The public hearing ends on 26 January 2023. 

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Building Confidence in the Capital Market
NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 240 / 2022 Tuesday 27 December 2022
SEC public hearing on proposed revision to supervision of digital asset custodial wallet providers
Bangkok, 27 December 2022 – The Securities and Exchange Commission, Thailand (SEC) is seeking public comments on a proposed revision to the principles for supervising digital asset (DA) custodial wallet providers. This would involve an exemption from the definition as DA Custodial Wallet Provider for DA issuers who provide custodial service on self-issued DA for their clients. The proposed revision would also require investment token issuers who provide custody and deposit service on self-issued DA to establish a system segregating their clients’ DA from their own assets, and would prohibit them from seeking benefits from the clients’ DA under their custody.

Pursuant to the Ministerial Notification concerning Approval for Undertaking of Digital Asset Businesses, effective since 13 July 2022, DA custodial wallet provider is required to obtain a DA business license before providing the custodial wallet. In this regard, the definition of DA Custodial Wallet Provider may cover deposit or custodial service for all types of DA, including such deposit or custody without the objective of custodial service business as in the case of DA issuers who provide custody of self-issued DA to their clients. 

The SEC therefore views it is appropriate to revise the principles for supervising DA custodial wallet providers. In this regard, on 10 November 2022, the SEC Board Meeting No. 15/2565 passed a resolution approving the proposed revision to the principles whereby an exemption from the definition as DA Custodial Wallet Provider would be given to DA issuers who provide custody of self-issued DA for their clients, in line with the intent to supervise DA custodial wallet providers. In addition, investment token issuers who provide deposit and custodial service on self-issued investment tokens would be required to establish a system or mechanism for clearly segregating DA of their clients from their own assets. Additionally, investment token issuers would be prohibited from seeking benefits from their clients’ DA under custody.  

The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=860 . Stakeholders and interested parties are welcome to submit comments and suggestions through the website or email: thanapatk@sec.or.th or korpsak@sec.or.th or napaporng@sec.or.th. The public hearing ends on 26 January 2023. 

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