Thailand Tightens Crypto Transfer Oversight with Self-Custodial Wallet Checks
Thailand's Securities and Exchange Commission (SEC) has introduced new Travel Rule regulations to align with global Anti-Money Laundering (AML) standards. The rules require digital asset operators to collect information about parties involved in crypto transfers.
The requirements will take effect on February 27, 2027, giving crypto businesses nearly six months to develop systems for transmitting, receiving and monitoring transaction information.
Thai digital asset operators must verify the ownership or control of self-hosted wallets when customers send crypto to or receive it from those wallets. Unlike centralized exchanges (CEXs) or custodians, self-custodial wallets give users direct control over private keys needed to access their crypto.
The new framework puts more responsibility on crypto companies to identify the parties behind transfers, including those involving self-custodial wallets.
Pornanong Budsaratragoon, secretary-general of Thailand's SEC, said the rules aim to 'reduce the risk of digital asset operators being used for money laundering and terrorist financing.'