Thailand SEC seeks tougher AML controls with travel rule for digital assets

The draft requires firms to share customer information with digital asset transfers.

Thailand's Securities and Exchange Commission has proposed a Travel Rule framework for digital asset businesses that would require crypto firms to collect and share customer information with digital asset transfers to strengthen anti-money laundering and cybercrime controls.

The regulator has opened a public consultation on draft rules covering digital asset exchanges, brokers, dealers, and custodians, which will run until 10 July.

Under the proposal, operators would need to put in place risk management policies for digital asset transfers, collect and verify customer information, and keep transaction records for at least five years.

The records must also be available immediately for regulatory checks during the first two years.

For transfers below $901.54 (THB30,000), operators would collect the names of senders and recipients, along with account numbers, wallet addresses or transaction reference numbers.

Transfers above that amount would require additional details, including the sender's address, date of birth for individuals, and government-issued identification or legal entity identification numbers.

Operators would also be required to screen senders, recipients and wallet addresses against sanctions lists maintained by Thai authorities, the Office of Foreign Assets Control, the European Union, and the Office of Financial Sanctions Implementation.

For transfers involving other virtual asset service providers, operators would need to check that counterparties have anti-money laundering controls, operate legally in their home markets and are not based in countries on the Financial Action Task Force blacklist.

Transfers involving providers in FATF grey list countries would require the use of blockchain analytics tools.

The draft rules also set requirements for transfers involving self-hosted wallets.

Depending on the transaction value, operators would need to verify who owns or controls the wallet or use blockchain analytics tools before customers can access the transferred assets.

The SEC said the proposed framework is intended to make digital asset transfers easier to trace, strengthen measures against money laundering and cybercrime, and bring Thailand's rules in line with international standards.

If approved, the rules are expected to take effect in the first quarter of 2027, about 180 days after publication in the Royal Gazette.