Thailand SEC Targets Hidden Crypto Funding With New Rules

TLDR

• Thailand targets hidden crypto funding to curb illicit financial flows
• New rules classify funders of shareholders as regulated entities
• Thailand expands oversight to indirect crypto funding channels
• Regulator aims to boost transparency across crypto ownership layers
• Thailand strengthens AML push with stricter crypto funding rules

Thailand is tightening oversight of crypto funding structures as regulators move to expose hidden capital flows and reduce financial crime risks. The Securities and Exchange Commission in Thailand has proposed new rules targeting indirect financial backers of major shareholders. The move reflects Thailand’s broader push to strengthen market integrity and enforce stricter compliance across digital asset operations.

Thailand Expands Definition of Major Shareholders

Thailand is revising how it defines major shareholders within securities and digital asset businesses. The regulator now aims to include funding providers who support shareholders directly or indirectly. This change allows Thailand to identify ultimate controlling parties behind complex ownership structures.

Thailand updated its shareholder criteria to reflect true control and ownership more accurately. However, authorities identified gaps linked to undisclosed funding sources and financial supporters. Therefore, Thailand is now extending its scope to capture these hidden financial relationships.

Under the proposal, Thailand will classify any financial supporter of a major shareholder as a major shareholder. This includes those funding share acquisitions or supporting holding entities within ownership chains. As a result, Thailand seeks to ensure all influential parties undergo regulatory approval.

Thailand Targets Indirect Funding and Financial Structures

Thailand is broadening its oversight to include indirect financial arrangements tied to crypto firms. The proposed rules cover guarantors, structured agreements, and investment instruments linked to shareholder funding. Consequently, Thailand aims to eliminate loopholes that allow concealed capital participation.

The regulator in Thailand will also assess funding routed through intermediaries or layered corporate structures. This approach ensures that Thailand captures all forms of economic influence over business operators. Thailand intends to prevent the misuse of financial systems for unlawful activities.

Thailand will exclude standard financial services such as regulated bank lending and margin loans. These transactions follow established frameworks and remain outside the expanded definition. Thailand balances stricter enforcement with practical business considerations.

Thailand Strengthens Anti-Money Laundering Measures

Thailand continues to intensify its efforts against money laundering and technology-related crimes. The proposed funding rules align with earlier actions targeting suspicious financial activity in digital markets. Thailand reinforces its commitment to maintaining a credible financial system.

Earlier in the year, Thailand launched enforcement campaigns to monitor illicit financial flows across sectors. Authorities also worked with industry groups to freeze thousands of suspicious accounts. These actions demonstrate how Thailand combines regulation with active enforcement.

The new proposal remains open for public consultation until April 22. During this period, Thailand seeks feedback to refine its regulatory framework further. Thailand aims to build a transparent and accountable environment for digital asset businesses.

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