Thailand is considering new regulations that would require cryptocurrency companies to provide greater transparency about where their funding originates. The proposal is part of an effort by the Thai Securities and Exchange Commission (SEC) to strengthen trust and accountability within the country’s growing digital asset industry.
Under the proposed framework, individuals or entities that financially support major shareholders in crypto businesses could be subject to regulatory review. The measure aims to ensure that the capital backing crypto firms comes from legitimate and clearly identifiable sources.
According to the SEC, the move addresses concerns that some companies could receive financial backing through indirect arrangements that make it difficult for regulators to determine the true source of funding. By expanding the scope of who must be reviewed, the regulator hopes to close potential gaps that could allow undisclosed or questionable funds to enter the sector.
The rules would apply not only to direct investors but also to parties providing financial support through agreements, guarantees, or other forms of indirect backing. In such cases, these providers may be required to undergo a similar approval process as major shareholders before a crypto business can operate under regulatory authorization.
Regulators believe the proposal will improve transparency in the ownership and funding structures of digital asset firms. By clearly identifying the parties behind significant financial contributions, authorities can better assess potential risks tied to money laundering, fraud, or other financial crimes.
The proposal also recognizes that certain entities may already fall under government supervision. In situations where a government-related organization is a major shareholder, the SEC indicated that the review process would focus primarily on the entity itself rather than additional funding layers.
Thailand has gradually tightened its regulatory approach to cryptocurrencies as the market expands. Authorities have introduced stricter compliance measures for exchanges and digital asset service providers, while also taking action against accounts suspected of being involved in illegal financial activity.
The SEC has opened the proposal for public consultation, allowing industry participants, investors, and other stakeholders to review the rules and provide feedback before any final decision is made.
If implemented, the policy could reshape how crypto firms structure their funding in Thailand. Companies operating in the market may need to provide clearer documentation about the origin of their capital and the individuals or organizations backing their operations.
The proposal reflects a broader trend among regulators worldwide as governments attempt to balance innovation in the crypto industry with stronger financial safeguards and transparency requirements.
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