Thailand Tightens Crypto Rules to Fight Money Laundering

Thailand plans stricter crypto funding rules to improve transparency, reduce risks, and prevent illegal money flows in digital asset markets.

The Securities and Exchange Commission of Thailand has proposed new rules for crypto businesses. The aim is to prevent money laundering and crimes involving technology. These measures are intended to safeguard the financial system and enhance trust in digital assets.

Thailand expands oversight to include hidden crypto funding sources

The regulator is currently targeting sources of funds behind big shareholders. Previously, rules only covered direct shareholders of crypto companies. However, hidden financial supporters were not fully examined under earlier frameworks.

In the new proposal, funding providers will be considered as key shareholders. This implies that they have to be sanctioned by the regulator. Thus, businesses are obliged to reveal all major financial supporters.

In addition, the SEC would like to see that all funding is legal. Money laundering can be detrimental to businesses and the market in general. Consequently, the increased scrutiny will minimize threats associated with illicit financing.

Indirect financial support is also proposed in the form of different approaches. As an illustration, guarantors and contract-based funding will be subject to new regulations. Investments that give control-like influence will also be included.

Nonetheless, these rules will not apply to normal financial activities. These are bank loans and margin trading facilities. Thus, the normal business processes will not be subjected to unnecessary limitations.

Besides that, the SEC revised previous regulations in March 2026. These regulations were meant to help in more accurately identifying real controlling individuals in businesses. The new proposal is based on that attempt to enhance transparency even more.

New rules aim to protect financial system and market credibility

The regulator feels that the sources of funds are very important in the safety of the business. When illegal activities are used to fund it, it may tarnish the reputation of the company. It can also pose legal risks and damage investor confidence.

Thus, the SEC would like companies to check all financial support. This measure will make sure that companies run on clean and reputable capital. Consequently, the financial system as a whole is strengthened.

The proposal has special provisions on government-related entities as well. Under these circumstances, SEC will not examine ownership on the entity level. The reason is that these entities are already under stringent government control.

Moreover, the regulator has made the proposal open to comments. Feedback can be shared with stakeholders prior to final rules being confirmed. This is done to enable the development of balanced and practical regulations.

In the meantime, international regulators are tightening crypto regulation across the globe. Prevention of illegal activities in digital markets is now a concern in many countries. This trend is reflected in the move by Thailand.

Ultimately, the new proposal is a significant move in the crypto industry in Thailand. It will minimize risks and promote long-term growth. With the rules being more transparent, businesses and investors can have increased confidence in the market.

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