Thailand's SEC plans to promote travel rules that require encrypted transfer records to be kept for

Thailand's Securities and Exchange Commission proposes "travel rules": Digital asset operators need to collect and verify cryptocurrency transfer information

Thailand's Securities and Exchange Commission (SEC) recently proposed new regulations requiring digital asset operators to regulate the collection, verification and retention of cryptocurrency transfer related information within the framework of their planned "travel rules."

Summary

Thailand The SEC's proposed "travel rules" require digital asset operators to collect and verify cryptocurrency transfer information. Operators need to verify ownership or control of self-managed wallets and verify counterparties and service providers. Transaction records must be retained for at least five years, with the first two years to ensure immediate access to regulators. The proposal aims to improve transaction traceability and prevent cryptographic services from being used for money laundering and technology-related crimes.

According to the Thailand SEC, the draft notice requires operators to establish a risk management system for the transfer and receipt of digital assets in order to obtain sufficient information to identify transactions that may involve money laundering or technological crimes.

The proposal covers transfers between customers and regulated service providers, as well as transactions involving self-managed wallets. Operators are required to collect information about customers and their counterparties, verify the service providers of the other party to the transaction, and keep relevant records of each transfer for at least five years. For the first two years of the retention period, transaction information must be maintained in a format that can be immediately retrieved or consulted by regulatory agencies.

Thailand "Travel Rules" extend verification to self-managed wallets

One of the requirements applies to customers sending or receiving digital assets to self-managed wallets. In such cases, the licensed operator needs to verify that the customer has ownership or control of the wallet. Counterparty verification will be extended to digital asset operators or other service providers participating in the transfer.

The SEC said the proposed controls are designed to provide sufficient information to trace the financial path of digital asset transactions and facilitate the review, prevention or interception of suspicious activity. Similar information-sharing requirements have become part of the "travel rules" framework in international anti-money laundering controls. The Financial Action Task Force (FATF) extended the standard to virtual assets and virtual asset service providers in 2019.

The framework requires covered cryptographic service providers to collect, share and retain identity information of senders and recipients, extending anti- money laundering controls that originally apply to traditional financial transfers to the digital asset field.

Thailand The draft stipulates obligations separately based on the operator's role in the transaction. The originator digital asset operator must send the information of the transferor and payee to the recipient digital asset operator together with the transfer order. If there are intermediate operators in the transaction path, their qualifications need to be verified and other prescribed steps taken to ensure that the path can be traced continuously. Operators receiving digital assets are subject to corresponding risk management requirements, including collecting information about the transferor and payee when the assets arrive from the originator operator or customer.

The SEC coordinated with the Anti- Money Laundering Office to develop crypto transfer rules

This proposal is the result of cooperation between the SEC and the Thailand Anti- Money Laundering Office (AMLO), The two sides are jointly formulating measures to control suspicious financial transactions. Thailand The Subcommittee on Financial Data Connections to Strengthen Suspicious Financial Transactions has previously decided that the SEC and AMLO should develop guidelines for digital asset companies. AMLO is also developing separate rules based on the National Anti-Money Laundering Law.

The SEC stated that it has coordinated with AMLO when setting the proposed requirements so that information is passed simultaneously with digital asset transfers and can be used for transaction monitoring. Before drafting the latest draft, regulators conducted preliminary consultations on relevant principles between March and April 2026. Most participants agreed with the proposed framework and submitted comments, which the SEC has considered when refining the requirements.

Anti- Money Laundering Review in Thailand The field of digital assets is increasingly strengthening. In July 2026, Thailand's central bank and the SEC began reviewing stablecoin transactions after authorities discovered that there may be high-value USDT activity that bypasses normal financial reporting channels. The review uses data analysis techniques to examine unusual transactions and also investigates potential links related to money laundering , online gambling and Thailand's grey economy.

Authorities have looked beyond transactions processed directly through regulated platforms. An INTERPOL operation report in July 2026 showed that 5811 people were arrested in 97 countries and regions and US$293 million in illegal assets were intercepted. The Thai authorities involved in the operation discovered a network suspected of cryptocurrency money laundering , which transferred proceeds from "pig killing plate" fraud through cross-chain token exchanges. According to operation details, a wallet linked to the investigation handled more than $122.5 million in funds.

"Travel rules" themselves have entered a more stringent form in several Asian markets. South Korea approved the amendment in August 2026, which will eliminate its transfer threshold and require information to be shared for every transfer between domestically registered virtual asset service providers.

Thailand tightens regulation of licensed crypto companies

In Thailand While the SEC is proposing to transfer control, it is formulating a number of other rules for the domestic digital asset field. In July 2026, regulators filed criminal charges against Bitkub Online and two former directors, accusing them of allegedly making false regulatory reports related to the 2021 cyber attacks. The attack resulted in losses of approximately 1.7 billion baht (approximately US$50 million) in digital assets. The SEC alleges that reports filed between May 10 and October 30, 2021 failed to accurately reflect the decline in Bitkub's digital asset holdings after attackers stole 16 cryptocurrencies. Bitkub said its delayed disclosure attack was to prevent bank runs and subsequently replaced stolen assets without customers suffering losses. The SEC's complaint concerns information submitted to regulators after the incident occurred.

While Thailand continues to develop new channels for regulated crypto investment, regulatory controls are also expanding. On August 31, 2026, the SEC proposed rules to allow overseas crypto derivatives to be opened to retail investors through licensed intermediaries, provided that the product meets specific requirements. Eligible contracts must have characteristics comparable to products allowed in Thailand and use regulated central counterparty clearing arrangements overseas. Under the proposal, other foreign crypto derivatives will remain limited to institutional investors.

The latest derivatives proposal follows Thailand's decision in early 2026 to recognize cryptocurrencies as qualifying underlying assets under the Derivatives Trading Act. Since then, regulators and Thailand Futures exchanges have been formulating requirements for crypto-related futures and options. Another consultation in April 2026 aims to simplify crypto derivatives rules and allow licensed digital asset companies to apply for derivatives licenses without establishing a separate legal entity. Existing requirements force companies to set up separate entities for derivatives businesses, increasing operating and compliance costs.

Thailand is building rules for more regulated crypto products

Thailand is also promoting a spot crypto ETF program. In August 2026, regulators advanced the Bitcoin and Ethereum ETF rules to the draft stage, proposing that locally listed funds need to have an average net exposure to the underlying cryptocurrency of at least 80% of their net asset value during each fiscal year. Bitcoin and Ethereum will initially be the only eligible cryptocurrencies. Domestic digital asset custodians will remain the preferred custody option, but the SEC may allow qualified foreign custodians if deemed necessary. The framework will allow locally established crypto ETFs to trade on the Thailand stock exchange, allowing investors to gain exposure through securities accounts without directly managing cryptocurrency wallets.

Thailand has identified cryptocurrencies as the underlying asset for regulated derivatives in February 2026, opening the way for products based on assets such as Bitcoin. This change provides regulators and the Thailand Futures Exchange with the legal basis for developing crypto-related futures and options.

Regarding the "travel rules" proposal, the SEC said the requirements are intended to improve transaction traceability and prevent licensed companies from being used for money laundering or terrorist financing, while not placing undue burdens on operators. The regulatory agency has issued a draft notice through its official website and the Thailand Legal Portal, and invited digital asset companies, other relevant parties and the public to submit opinions through consultation channels before July 10, 2026.