Thailand to tighten checks on crypto funders

The Securities and Exchange Commission of Thailand has proposed tougher checks on individuals and entities that provide funding to cryptocurrency firms, including new disclosure and vetting requirements for major backers.

Under the draft rules, crypto exchanges, brokerages and digital-asset service providers would need to supply detailed information on shareholders, beneficial owners and significant funders when applying for or renewing licenses. Firms would be required to carry out enhanced due diligence on any backer whose source of funds cannot be clearly documented.

Regulators said the proposal focuses on tracing the ultimate source of capital rather than relying solely on the immediate investor. The measures would expand the types of documentation firms must keep and share with supervisors and require ongoing checks as part of license supervision.

The SEC linked the proposal to efforts to stop illicit flows into the digital-asset sector and to reduce the risk that local platforms are used to launder money or conceal proceeds of crime. Officials also cited concerns about financial stability and investor protection as trading volumes and institutional involvement in Thailand’s crypto market have increased. Complex ownership structures and opaque funding channels can complicate audits and investigations, the regulator said.

Industry groups cautioned the changes could raise compliance costs and slow investment into legitimate startups. Some market participants warned additional reporting could deter foreign investors that prefer simpler disclosure regimes. Consumer advocates welcomed the move, saying stronger scrutiny could reduce fraud and boost confidence in licensed platforms.

The SEC plans to publish the draft rules for consultation with exchanges, crypto firms, financial institutions and other government agencies before finalizing the requirements. Responses during the consultation will inform the timeline and the final scope of the new checks.

Thailand has required crypto businesses to register with securities authorities and meet capital and conduct standards for several years. The draft funding checks follow a wider trend by regulators in the region and globally to increase transparency in digital-asset markets after platform failures and cases of illicit finance.