Thailand Tightens Crypto Regulations Under Travel Rule

Thailand's Securities and Exchange Commission (SEC) has issued new regulations for cryptocurrency exchanges under the Travel Rule, requiring them to verify customers' counterparties and establish ownership or control of self-hosted wallets involved in transfers. The requirements will take effect on February 27, 2027, giving exchanges almost six months to develop the necessary infrastructure.

The framework is designed to align Thailand's crypto sector with Financial Action Task Force (FATF) standards, helping authorities combat money laundering, terrorist financing, and technology-related financial crime. Regulated operators must collect information capable of identifying parties involved in transactions, which will be a departure from conventional blockchain transactions where an exchange may only know the destination address.

The new rule places responsibility on regulated businesses to establish who controls a wallet when it interacts with their platforms. This means that exchanges and other digital-asset operators must conduct due diligence on transaction counterparties and determine whether another crypto service provider involved in a transfer satisfies applicable qualifications.