Thailand implements cryptocurrency travel regulations requiring verification of ownership of self-custody wallets

The Securities and Exchange Commission of Thailand (SEC) has officially approved the travel rule for crypto assets, requiring digital asset operators to verify the ownership or control of wallets when customers send or receive crypto assets to self-custody wallets, and to retain transaction-related information for at least five years for regulatory review. Pornanong Budsaratragoon, Secretary-General of the Thai SEC, stated that the rule aims to reduce the risk of digital asset operators being used for money laundering and terrorist financing.

The new regulations were finalized after two rounds of public consultations this year, with the first round presenting a draft in March and a notification draft released in June. The Thai SEC stated that most stakeholders expressed support. As the travel rule is implemented, Thailand is considering expanding the access to regulated crypto products. On Monday, the Thai SEC proposed allowing intermediaries to offer specific crypto derivatives traded on regulated overseas exchanges to retail investors.

In the days prior, regulators also advanced the draft rules for spot Bitcoin and Ethereum exchange-traded funds (ETFs) and simultaneously sought opinions on the foreign digital asset custodians used by funds investing in crypto assets. Thailand's move aligns with global regulatory trends, as the Financial Action Task Force (FATF) estimates that by 2026, 83% of surveyed jurisdictions will have enacted travel rule legislation.