Thailand’s SEC Proposes New Regulations for Stablecoin Transactions
Thailand’s financial watchdog, the Securities and Exchange Commission (SEC), is considering new regulations aimed at stablecoin transactions. On September 11, the SEC released a consultation paper suggesting a limit of 5 million baht (around $151,000) on both incoming and outgoing transfers of stablecoins for each customer, operator, and day. This proposal intends to enhance safeguards against money laundering, cybercrime, and practices that might circumvent regulations governing international money remittances.
The public has until September 25 to provide feedback on these proposed rules, which, if enacted, would mandate that all transactions with licensed digital asset businesses occur between accounts attributed to the same customer.
Proposed Regulations Overview
Under the proposed regulations, customers would only be allowed to deposit or withdraw stablecoins to and from accounts verified as belonging to them. This means that sending stablecoins from a third-party wallet into an exchange account would not be permitted, and customers could not directly transfer stablecoins from a licensed operator to someone else’s wallet. Moreover, these restrictions affect transfers linked to foreign digital asset operators and private wallets, necessitating Thai businesses to establish procedures for confirming ownership before facilitating transactions.
The SEC is specifically focusing on the implications of stablecoins alongside regulations derived from the Travel Rule, which requires the transmission of certain customer information in money transfers. Businesses would be tasked with classifying customers, scrutinizing the account details, and monitoring for any connections to flagged accounts or illicit transactions.
Exemptions and Special Cases
Beyond individual transfers, there are exemptions outlined for certain groups. Businesses that transfer stablecoins using their accounts solely for their own commercial purposes would not encounter the same daily limits as long as the activity aligns with their stated business objectives. Similarly, institutions that operate under the auspices of the Bank of Thailand can seek specific permission for stablecoin transactions based on their operational context.
Market makers who provide liquidity to stablecoin-baht pairs may also operate without the imposed limits as long as these transactions are necessary for liquidity management, although each operator must ensure these activities comply with the intended functionalities.
New Standards for Off-Platform Transactions
In addition to regulating stablecoin transfers, the SEC is also proposing new standards for off-platform transactions managed by digital asset brokers and dealers, setting a minimum value of 3 million baht (approximately $91,000) for these deals. Consequently, businesses facilitating this service would need to make their trading prices public for customer verification, and brokers would be restricted from executing direct transactions between clients, instead acting as intermediaries.
Conclusion
All of these proposed regulations aim to foster transparency within the digital asset market, aiming to deter potential misuse for illegal activities such as money laundering. As the SEC prepares to finalize these proposals, they emphasize the importance of compliance and oversight. Stakeholders have until the end of September to submit their comments, after which the SEC may revise the proposals accordingly before their potential rollout, targeted for 60 days after the notification becomes effective.
