Thailand moves to scrutinise hidden backers of crypto firms

Thailand’s Securities and Exchange Commission has opened a public consultation on rules that would treat financiers behind major shareholders of crypto asset operators as major shareholders themselves, bringing them into the regulator’s approval process. The consultation runs through April 22.

The proposal targets a part of the ownership chain that often sits outside formal shareholder registers. The SEC says it wants to stop the capital and digital asset markets from being used for technology-related crime and money laundering by taking a closer look at who is supplying the money and who may be exerting control behind the scenes.

The proposal goes beyond the cap table

Under the draft, a person or entity that funds a major shareholder, or helps finance the purchase of shares in an operator or its holding company, would be treated as a major shareholder and would need SEC approval. That would apply to securities firms and digital asset business operators.

The SEC says the scope would also cover guarantors, contractual arrangements, and investments in instruments that leave a party acting in substance as a funding provider. It would not apply to ordinary business transactions such as lending by Thai financial institutions, equivalent foreign banks, or margin loans for securities trading.

The regulator is looking deeper into ownership structures

The proposal is aimed at hidden capital flows that may sit behind formal ownership structures. Instead of stopping with the name on a shareholder register, the SEC wants to examine the financial relationships that may support control or economic influence over an operator.

The rules would also extend to share acquisitions in both crypto operators and legal entities that hold shares in those operators. That approach would make it harder to avoid oversight through indirect ownership structures.

Thailand is tightening anti-money laundering oversight

The move fits into a wider push by Thai authorities to tighten oversight of financial flows linked to illicit activity. Regulators have been paying closer attention to ownership, beneficial control, and the source of capital moving through digital asset businesses.

For crypto operators, approval risk would not stop with the registered shareholder if someone else is funding the stake or shaping the financial terms behind it. Firms with indirect backers, guarantee structures, or off-register funding arrangements should expect tougher scrutiny if the proposal is adopted.