Thailand SEC Proposes Strict Funding Oversight for Digital Asset Firms

The Securities and Exchange Commission of Thailand (Thai SEC) has introduced a proposal to tighten the regulatory requirements for cryptocurrency businesses, specifically targeting the sources of capital backing major shareholders. Under the new guidelines, any person or entity providing financial support to major shareholders—whether directly or indirectly—would be classified as a shareholder and must obtain regulatory approval. This initiative is designed to increase transparency and curb money laundering by exposing hidden capital flows. The regulator aims to ensure that business operators are funded through legitimate sources, thereby reducing legal, credibility, and reputational risks associated with unlawful financing. The proposed rules cover a broad spectrum of financial contributions, including indirect funding through share acquisitions, guarantors, and specific contractual arrangements. However, government-related entities, such as ministries and public organizations, will be exempt from this detailed review as they are already subject to state oversight. This regulatory shift mirrors a broader trend across Asia, with South Korea similarly considering caps on shareholder stakes in crypto exchanges. The proposal follows a wider 'gray money' crackdown in Thailand, which has already seen local platforms freeze approximately 10,000 accounts to combat financial crime. The Thai SEC has opened the proposal for public consultation, with a deadline set for April 22.