The Securities and Substitution Committee (SEC) of Thailand continues introducing new regulations for the cryptocurrency industry, citing investor protection concerns.

On Wednesday, the Thai SEC proposed a set of boosted regulations related to custody of investors' cryptocurrency holdings held by digital nugget concern operators. The newly proposed rules refer to custody of fiat coin for digital asset accounts equally well as cryptocurrency lending, or earning involvement on crypto holdings.

The SEC is specifically looking to prohibit crypto companies from using investor avails for the "benefit of another client or other persons," or seeking benefits from both investors' fiat coin and digital assets, including digital lending to other persons. "Seeking benefits from clients' fiat money shall be prohibited except in the grade of deposit with commercial banks," the proposal reads.

The new rules also suggest a new framework for the withdrawal and transfer of fiat money from digital asset accounts, requiring compliance with the principles of "decentralized approval authority, multi-sign approving authorization, and bank check and residuum." According to the regulator, the rules would strengthen investor protection and the reliability of crypto service providers, ensuring that records of investors' holdings are accurate and updated.

Related: Thailand's key depository financial institution warns against using digital currencies for payments

The SEC is now accepting public comments on newly proposed regulations until Sept. 22. The regulator did non immediately respond to Cointelegraph's request for comment.

The Thai SEC has been actively introducing new crypto manufacture regulations this yr amid booming cryptocurrency adoption in the country. In March, the authorisation proposed to impose a $32,000 minimum almanac income requirement for investing in cryptocurrencies like Bitcoin (BTC). The regulator previously banned crypto exchanges from handling sure token types including nonfungible tokens in June.