Thailand's SEC Says 'Nice Try': Crypto Firms' Shadowy Funders Now Need to Come Out of the Shadows

Thailand's securities regulator is getting serious about knowing exactly who's behind crypto businesses—and we mean everyone. No more hiding behind layers of shell companies like a degen at arug pull press conference.

The Thai SEC on Monday proposed expanding approval requirements for crypto businesses to include financiers behind major shareholders. Under the proposal, any person providing backing or financial support to major shareholders would itself be treated as a shareholder requiring regulatory approval. That's right, even your mysterious benefactor who "just believes in the project" now needs to show their face.

The move aims to tighten oversight of hidden capital flows and ensure business operators are funded from legitimate sources, rather than from financing linked to unlawful activities. The agency noted this could pose legal, credibility and reputational risks. Nothing says "trust us, we're legitimate" quite like undisclosed dark money from who-knows-where.

The proposed funding requirements don't just cover direct cash injections. Indirect backing through share acquisitions would also fall under the new rules—including acquisitions in business operators and in legal entities that are shareholders of those operators. Creative accounting just got a lot less creative.

"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 SEC said. Legalese for "we're coming for your backdoor funding, folks."

One exception: if a major shareholder is a government-related entity like a ministry or public organization, the agency will only review ownership at the entity level since "these entities are already subject to government supervision and oversight." Apparently, government entities are automatically trustworthy. Bold strategy, SEC.

The proposed measures are open for public consultation until April 22. Slap those comments in before the window closes, or forever hold your peace.

The move reflects an emerging regulatory trend in Asia. South Korean regulators are weighing proposals to cap crypto exchange shareholder stakes at 20%. Looks like the region is done letting anonymous whales run wild.

Thailand has been ramping up anti-money laundering efforts recently. In January, authorities launched a "gray money" campaign to tighten oversight across physical and digital markets. Following efforts by the Thai SEC and the Thai Digital Asset Operators Trade Association, local crypto platforms reportedly froze 10,000 accounts as part of an anti-money laundering crackdown. Nothing like a good account freeze to remind everyone that the fun police are always watching.