Key Takeaways
- • Thailand's Securities and Exchange Commission opened public consultations on September 11, 2026, for revised net capital requirements affecting digital asset exchanges, brokers, dealers, fund managers, and custodians that hold customer assets.
- • New risk categories—counterparty, settlement, and fund management risk—will be added to the net capital framework, with custody risk charges shifting to a tiered structure that includes reducing cold wallet requirements from 2% to 1% of assets.
- • The regulatory overhaul mandates segregated digital asset wallets for each customer, advanced key and wallet management technology, and stricter counterparty selection and contracting rules for brokers and exchanges operating together.
- • Domestic digital asset brokers gain permission to use local exchanges for order execution and customer asset custody under specified conditions, reflecting the SEC's stated goal to "reduce reliance on foreign service providers."
- • Minimum capital thresholds and definitions of qualifying digital tokens and insurance policies offsetting custody risks will be revised; public consultation closes October 11, 2026.
Summary
Thailand's Securities and Exchange Commission initiated public consultations on September 11, 2026, for comprehensive amendments to net capital regulations governing digital asset business operators. The proposed changes represent a significant structural overhaul of how the regulator treats capital adequacy, custody arrangements, and operational risk in the digital assets sector.
The core amendments introduce three new risk categories into the existing net capital framework: counterparty risk, settlement risk, and fund management risk. These additions apply to digital asset exchanges, brokers, dealers, fund managers, and advisers that provide custody of customer assets. The SEC frames these changes as necessary to ensure capital maintenance more accurately reflects actual business risks while reducing operators' dependence on foreign service providers for critical functions.
A central component of the proposal restructures how custody risk is charged. The regulator will implement a tiered custody risk charge structure and reduce the net capital requirement for cold wallet custody from 2% to 1% of digital assets held, aimed at lowering operational costs for compliant operators. Each customer's digital assets must be held in segregated wallets using advanced technology for key and wallet management. Brokers and exchanges that work together will face additional operational rules covering counterparty selection, contract terms, information disclosure, reporting obligations, safekeeping standards, and digital wallet administration.
The amendments also revise the adjusted net capital formula itself, modify definitions of digital tokens eligible for counterparty risk exemptions, and clarify which insurance policies can offset capital requirements for custody risks. Minimum capital thresholds that trigger potential business suspension for digital asset operators also face revision. The SEC's allowance for local brokers to use domestic exchanges for trading order execution and customer asset custody—subject to specified conditions—signals a strategic pivot toward localizing custody infrastructure and reducing foreign service provider reliance.
The consultation period runs through October 11, 2026, allowing market participants to submit formal comments on the proposed framework.
The core amendments introduce three new risk categories into the existing net capital framework: counterparty risk, settlement risk, and fund management risk. These additions apply to digital asset exchanges, brokers, dealers, fund managers, and advisers that provide custody of customer assets. The SEC frames these changes as necessary to ensure capital maintenance more accurately reflects actual business risks while reducing operators' dependence on foreign service providers for critical functions.
A central component of the proposal restructures how custody risk is charged. The regulator will implement a tiered custody risk charge structure and reduce the net capital requirement for cold wallet custody from 2% to 1% of digital assets held, aimed at lowering operational costs for compliant operators. Each customer's digital assets must be held in segregated wallets using advanced technology for key and wallet management. Brokers and exchanges that work together will face additional operational rules covering counterparty selection, contract terms, information disclosure, reporting obligations, safekeeping standards, and digital wallet administration.
The amendments also revise the adjusted net capital formula itself, modify definitions of digital tokens eligible for counterparty risk exemptions, and clarify which insurance policies can offset capital requirements for custody risks. Minimum capital thresholds that trigger potential business suspension for digital asset operators also face revision. The SEC's allowance for local brokers to use domestic exchanges for trading order execution and customer asset custody—subject to specified conditions—signals a strategic pivot toward localizing custody infrastructure and reducing foreign service provider reliance.
The consultation period runs through October 11, 2026, allowing market participants to submit formal comments on the proposed framework.
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