Key Takeaways:
Thailand’s securities regulator proposed a significant expansion of its crypto oversight, requiring any person providing financial support to major shareholders of a crypto business to gain regulatory approval.
“The provision of significant funding shall include guarantors, contractual arrangements, or investments in any instruments that result in the financial supporter having the status of, or acting in substance as, a funding provider to such major shareholders,” the Thai Securities and Exchange Commission (SEC) said in a statement on Monday.
The proposed rules, open for public consultation until April 22, would treat any entity backing a major shareholder as a shareholder itself. This includes indirect support through share acquisitions in parent companies of a crypto operator. The move is designed to bring hidden capital flows into the light and ensure crypto firms are funded from legitimate sources, mitigating risks from illicit financing.
This regulatory tightening in Thailand mirrors a broader trend in Asia, as authorities in South Korea are also considering proposals to cap shareholder stakes in crypto exchanges at 20 percent. The goal is to enhance market transparency and stability, which could raise compliance costs but may attract more conservative institutional capital long-term.
The proposal is the latest in a series of moves by Thai authorities to crack down on financial crime. In January, the government launched a “gray money” campaign to tighten oversight in both digital and physical markets to close money-laundering loopholes.
These efforts have already had a tangible impact. Coordinated action between the Thai SEC and the Thai Digital Asset Operators Trade Association recently led to local crypto platforms freezing approximately 10,000 accounts as part of a broad anti-money laundering (AML) initiative.
The new rules would not apply to government-related entities that are major shareholders, as they are already subject to state supervision.
This article is for informational purposes only and does not constitute investment advice.
