Thailand’s securities regulator is aiming to tighten oversight of cryptocurrency companies by expanding rules around their financiers to curb money laundering and tech-related crimes.
On Monday, the Securities and Exchange Commission of Thailand (Thai SEC) proposed that approval requirements for crypto businesses be extended to include financiers behind major shareholders. Under the proposal, anyone providing backing or financial support to a major shareholder would be treated as a shareholder themselves, requiring regulatory approval.
The initiative seeks to strengthen transparency of capital flows and ensure that crypto firms are funded through legitimate sources rather than channels linked to illegal activities, which could create legal, reputational, and credibility risks, the agency said.
The move aligns with a broader regulatory trend in Asia, with South Korean regulators also considering limits on exchange shareholder stakes to 20%.
Indirect funding also included
The proposed rules cover a wide range of financial contributors, including those who indirectly fund major shareholders through share acquisitions. The requirements would apply to both direct acquisitions in business operators and acquisitions in legal entities that hold shares in those operators.
“The provision of significant funding includes guarantors, contractual arrangements, or investments in any instruments that effectively make the financial supporter a funding provider to major shareholders,” the Thai SEC said.
For major shareholders that are government-related entities—such as ministries, departments, public organizations, or other agencies—the regulator will only assess ownership at the entity level, noting that these bodies are already subject to government oversight.
The proposed rules are open for public consultation until April 22.
Thai authorities have recently intensified efforts to combat financial crimes. In January, local regulators launched a “gray money” campaign to strengthen oversight across both physical and digital markets, aiming to close money-laundering loopholes.
As part of these efforts, and following collaboration between the Thai SEC and the Thai Digital Asset Operators Trade Association, local crypto platforms reportedly froze around 10,000 accounts in an anti-money laundering crackdown.
