Thailand SEC To Vet Hidden Backers of Crypto Firms

Under the proposal, any party providing significant funding or material support to a major shareholder – directly or indirectly through share acquisitions – would require SEC approval. This covers loans, guarantees, contractual arrangements, structured investments or any mechanisms that confer economic influence, even without formal equity stakes.

Grey money crackdown moves upstream

The initiative forms part of Thailand's intensified efforts to block "grey capital" – illicit or opaque funds often tied to money laundering and investment scams. Authorities see digital assets as a vulnerable channel due to their speed, borderless nature, and potential for pseudonymity.

Earlier measures concentrated on the transaction level. Licensed digital asset operators, coordinated through the Thai Digital Asset Operators Trade Association, froze more than 10,000 accounts suspected of serving as mule accounts for laundering illicit proceeds. They also introduced a 24-hour "speed bump" holding period for transfers of 50,000 baht ($1,580) or more, paired with enhanced verification including video identity checks.

The SEC has additionally advanced FATF (Financial Action Task Force) -aligned Travel Rule guidelines, requiring crypto businesses to collect and share sender and recipient information on transactions. These steps targeted suspicious flows after they occurred.

The new proposal shifts focus upstream to the ownership and funding structures themselves. By classifying qualifying funding providers as major shareholders subject to approval and screening, regulators aim to stop questionable capital at the entry point rather than merely detect it downstream.

Deeper due diligence for licensed operators

Securities and digital asset businesses would need to perform rigorous due diligence on the primary source of funds for any major shareholder arrangement. Major shareholders are generally defined as those holding more than 10% of voting rights or exercising control.

Exemptions would apply to standard lending from regulated Thai financial institutions or equivalent foreign banks under the Basel Committee. Margin loans for securities trading and government-related entities (reviewed only at the entity level) would also fall outside the expanded scrutiny.

SEC Secretary-General Pornanong Budsaratragoon has framed the move as one of five integrated measures to curb illicit funds, warning that unlawful funding sources can damage market trust, expose firms to legal risks, and harm overall reputation.

Public consultation on the draft remains open until 22 Apr. The proposal builds on a March 2026 revision that already broadened the definition of major shareholders in regulated entities.

For crypto exchanges, brokerages, and other licensed operators in Thailand, the rules would raise the bar for capital raising and shareholder structuring. Informal or opaque financing routes would face the strongest pressure, while established, regulated bank funding stays largely unaffected.

Thailand is simultaneously accelerating work on crypto ETF regulations, with draft rules targeted for release in the third quarter of 2026. The ownership transparency push signals a dual strategy: fostering innovation in digital assets while reinforcing safeguards against financial crime. This balance could bolster investor confidence and help position Thailand as a more credible regional hub, though it may raise compliance costs and slow certain transactions in the short term.