Thailand’s Securities and Exchange Commission has proposed a tighter rule that could force crypto exchanges to reveal not just who formally owns large stakes, but who is actually bankrolling those shareholders.
Under the draft, anyone providing the financial muscle behind a major shareholder — whether they fund share purchases, act as guarantors, or use contracts to supply economic backing — would need prior regulatory approval. The regulator says the change is intended to cut off capital flows that could be linked to illegal activity and to protect licensed firms from reputational or legal harm.
Key points of the proposal
- Approval would be required for backers who, in substance, act as major funders of shareholders, regardless of how their arrangements are structured.
- The rule would also reach financiers behind legal entities that hold shares in crypto operators — not just direct shareholders themselves.
- The only carve-out: government bodies (ministries, public agencies, similar entities). The SEC said it will evaluate ownership at the agency level only, since those entities are already supervised by the state.
- The consultation runs until April 22.
Why it matters
Regulators are increasingly focused on who really controls and finances platforms that handle public crypto trading. Thailand’s proposal is intended to tighten oversight of hidden capital flows and strengthen anti-money-laundering defenses — part of a broader enforcement push that saw Thai crypto platforms freeze roughly 10,000 accounts earlier this year. Authorities also launched a campaign in January aimed at curbing so-called “gray money” across both physical and digital markets.
Regional context
Thailand isn’t alone. Reports say South Korean regulators are considering a separate measure to cap ownership stakes in crypto exchanges at 20%. Together, these moves signal that Asian watchdogs are sharpening scrutiny of ownership and funding structures in the crypto sector.
What comes next
The final impact will hinge on how regulators define terms such as “significant funding” and how strictly they interpret contractual or indirect financing arrangements. If adopted in current form, exchanges should expect tougher vetting of investors and behind-the-scenes backers, longer approval processes for ownership changes, and potentially new compliance costs as platforms map out their ultimate funding sources.
The SEC posted the proposal publicly on April 7; the consultation period closes April 22.
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