Thailand Tightens Crypto Rules for P2P Transfers and Self-Hosted Wallets

Thailand's Securities and Exchange Commission (SEC) has published a new risk framework called the 'Travel Rule for Digital Assets (TRDA)' to ensure that digital asset business operators have sufficient information to assess and manage money laundering risks in line with international standards.

The SEC aims to prevent misuse of crypto platforms as channels for money laundering and related crimes, particularly through peer-to-peer transfers and self-hosted wallets. To achieve this, licensed crypto platforms will be required to identify customers and their counterparties, including ownership of self-hosted wallets. Exchanges must also submit information on the sender and beneficiary of each crypto transaction.

The regulations are set to take effect on February 27th, 2027, giving players until the end of 2026 to develop systems for compliance with the latest guidelines. The SEC's move is part of a global anti-money laundering campaign driven by the Financial Action Task Force (FATF), which has been pushing countries to implement stricter regulations.

Thailand is not alone in this effort, as several other countries, including those in the European Union and South Africa, have similar plans to tighten crypto AML rules. The punishment for violating these rules can be severe, with entire countries or regions facing banning.