Thailand’s Securities and Exchange Commission (SEC) has announced three new regulatory requirements, which primarily require digital asset business operators to provide investors with training or a knowledge test on cryptocurrencies and to disclose information about the quality of their service and IT usage capacity.
The amended SEC notification detailing these new obligations was promulgated on July 1, 2022; however, the measures come into effect separately, as detailed below.
Training or Testing on Cryptocurrency
From August 30, 2022, cryptocurrency exchanges, brokers, and dealers must provide guidance and education to their clients on basic asset allocation suitable to their capacity. These types of digital asset business operators must also provide for training or a knowledge test on cryptocurrency. The content should at least cover cryptocurrency, blockchain technology, digital wallets, and an overview of the market and investments.
The following types of clients are exempted from these requirements:
- Existing clients of the digital asset business operators before July 1, 2022;
- New clients of the operator who already have experience investing in cryptocurrency before using the service of the business operator; and
- Institutional investors, ultra-high-net-worth investors, and high-net-worth investors.
If the clients are legal entities other than those mentioned above, their representatives or appointed persons are required to undergo training or testing.
The training or knowledge test is a prerequisite to using a digital asset business operator’s services. Operators are not allowed to provide their services to clients who do not undergo training or testing.
Disclosure of Service Quality and IT Usage Capacity
From January 1, 2023, cryptocurrency/digital token exchanges, brokers, and dealers are required to disclose to the SEC information about the quality of their services (including any technological errors and complaints from clients), and their IT usage capacity.