Thailand’s SEC Unveils Stricter Rules for Cryptocurrency Firms
In a significant regulatory development, Thailand’s Securities and Exchange Commission (SEC) is gearing up to unveil stricter rules aimed at unveiling hidden financial backers of local cryptocurrency firms. This move marks a crucial step towards enhancing anti-money laundering (AML) measures while also paving the way for Bitcoin-linked derivatives and exchange-traded funds (ETFs) in the country.
New Policy and Accountability Measures
The SEC’s new policy, as reported by ChainCatcher, seeks to hold hidden funders of major shareholders of cryptocurrency companies accountable, subjecting them to the same approval protocols as publicly known investors when they provide substantial financial backing through loans, investment contracts, or structured financing arrangements. Although the comprehensive proposal has yet to be published in English, the draft will reportedly target licensed exchanges, brokers, and dealers governed by Thailand’s Royal Decree on Digital Asset Business.
Refining Ownership Structures
This effort is part of a broader initiative aimed at refining ownership structures within the Thai crypto industry. Earlier this year, in February, the Ministry of Finance moved to redefine a major shareholder to include anyone possessing over 5% of voting rights or anyone who effectively exerts control over the management of digital asset firms. According to an official communiqué monitored by Digital Policy Alert, operators are mandated to review their ownership structures and submit applications for approval of new major shareholders within 180 days from March 4, 2026. This adjustment seeks to close longstanding loopholes related to nominee and layered holdings, thereby extending scrutiny to financiers influencing control of crypto platforms even if they remain nameless in official documents.
Combatting Money Laundering
To complement the scrutiny on ownership, Thai authorities have ramped up their efforts to combat money laundering via digital asset platforms. Reports indicate that in March, local exchanges took decisive action by freezing over 10,000 accounts suspected of functioning as “mule” wallets, a tactic enabled by a new regulatory measure termed the “Speed Bump.” Furthermore, the SEC has proposed implementing a “Travel Rule” that mandates cryptocurrency businesses to collect and transmit sender and recipient information for each transaction. SEC Secretary-General Pornanong Budsaratragoon has characterized this initiative as a crucial component of the agency’s proactive strategy to deter fraudulent activities and money laundering associated with cryptocurrencies.
Enhancing Thailand’s Crypto-Friendly Status
Interestingly, these developments come as Thailand seeks to enhance its status as a crypto-friendly hub. Earlier this year, the SEC affirmed its recognition of cryptocurrencies like Bitcoin as valid underlying assets under the nation’s Derivatives Act. This recognition allows such assets to support regulated futures products, a shift that is expected to foster greater market inclusivity and empower investors in risk management and portfolio diversification. Additionally, the SEC is poised to introduce formal guidelines for cryptocurrency exchange-traded funds within the upcoming months, potentially allowing investors to dedicate up to 5% of their diversified portfolios to digital assets once the new framework is established, as reported by the Bangkok Post.
