The Securities and Exchange Commission of Thailand has put forward new rules aimed at tightening oversight of cryptocurrency businesses by expanding approval requirements to cover those who financially back major shareholders. The proposal, announced on Monday, would treat any person providing funding or financial support to a major shareholder as a shareholder in their own right, subject to regulatory approval. The agency says the move is designed to ensure that crypto operators are financed through legitimate sources rather than funds tied to unlawful activity.
According to the regulator, the concern centers on hidden capital flows that could expose businesses to legal, credibility, and reputational risks. The proposed rules cover a broad range of financial contributors, including those who provide support indirectly through share acquisitions. They apply both to direct investments in crypto business operators and to investments in legal entities that themselves hold shares in those operators.
The SEC clarified the scope of what qualifies as significant funding in its proposal. “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 agency stated. This broad definition is intended to close potential loopholes that could allow undisclosed backers to exert influence without facing regulatory scrutiny.
An exception is made for government-related entities, such as ministries, departments, and public organizations. In those cases, the SEC says it will only review ownership at the entity level, noting that such bodies are already subject to government supervision. The proposed measures are open for public consultation until April 22.
The Thai proposal reflects a broader regulatory trend taking shape across Asia. In South Korea, regulators are reportedly weighing proposals to cap crypto exchange shareholder stakes at 20%, signaling that multiple governments in the region are moving to impose tighter controls on ownership structures within the digital asset sector.
Thai authorities have been intensifying their efforts against financial crime more broadly in recent months. In January, local officials launched a so-called “gray money” campaign targeting both physical and digital markets as part of a wider push to close money-laundering loopholes. The initiative reflects growing concern among Thai policymakers about the potential misuse of digital asset platforms for illicit financial activity.
Enforcement actions have already accompanied these regulatory efforts. Following coordinated work between the Thai SEC and the Thai Digital Asset Operators Trade Association, local crypto platforms reportedly froze around 10,000 accounts as part of an anti-money laundering crackdown. The new funding rules, if adopted, would add another layer of oversight to an industry that regulators say requires closer monitoring of its financial backers.
Originally reported by CoinTelegraph.
