In an attempt to provide cryptocurrency investors with a higher level of security, Thailand’s Securities and Exchange Commission (SEC) is hard at work establishing new legislation for bitcoin custodial services.

The Thai Securities and Exchange Commission (SEC) published new guidelines on January 17 that require virtual asset service providers (VASPs) to develop a digital wallet management system to ensure safekeeping of virtual assets.

The new restrictions are directed at crypto custodians, also known as VASPs, which are companies that provide services linked to the secure storage of cryptocurrencies.

Laws require the development of policies and guidelines to oversee the risk management of digital wallets and private keys. These regulations require the development of policies and guidelines. According to the rules, this is one of the three main conditions that must be met.

VASPs are required to communicate with authorities about such policies and offer action plans to comply with the laws. This is necessary to ensure that VASPs do not break the law.

In addition, the SEC requested that cryptocurrency custodians explain their plans and procedures for establishing digital wallets and keys, as well as preserving and managing them.

The authority will also force cryptocurrency custodians to create backup plans in case the wallet management system is disrupted by unplanned incidents. This requirement will come into force when the authority implements its portfolio management system.

The period of time that has been assigned for cryptocurrency custodians to comply with the requirements of the regulation is six months, from the day it comes into effect.

The most recent crypto laws from the Securities and Exchange Commission of Thailand are in line with the authority’s goals to enact stricter crypto restrictions in the wake of industry failures like the FTX crash. These targets were set in response to efforts by the Securities and Exchange Commission of Thailand to enact stricter crypto restrictions.

Reports indicate that in early January, the government opened a new investigation into a local cryptocurrency exchange known as Zipmex. The government allegedly stated that the company had been illegally offering services related to digital asset fund management.