Thailand SEC Proposes Crypto Indirect Funder Oversight

Thailand's Securities and Exchange Commission announced a proposal on Monday to expand regulatory oversight of cryptocurrency businesses by requiring approval for indirect financial backers of major shareholders, aiming to uncover hidden funding sources and prevent illicit capital from entering the market.

The initiative targets entities providing significant support to shareholders through guarantees, structured financing arrangements, equity acquisitions, or other contractual mechanisms. Under the proposed rules, these funders would be classified as major shareholders themselves and subjected to the same vetting process as direct owners. The measures apply to licensed digital asset operators, including exchanges, brokers, and dealers, regulated under Thailand's Royal Decree on Digital Asset Businesses. Officials stated that the changes address gaps in current disclosure requirements, where layered ownership structures can obscure actual control and decision-making influence.

This builds on recent updates from the Ministry of Finance, which redefined major shareholders in February as individuals or entities holding more than 5 percent of voting rights, either directly or...