Thailand mandates verification of self-custody crypto wallets

Thailand introduces a Travel Rule for digital assets. The Thai securities regulator SEC will require crypto providers to collect client data, conduct due diligence on counterparties and verify ownership of self-custodial wallets for transfers from 27 February 2027. The rules are aimed at combating money laundering, terrorist financing and technology-related crime.

In brief:

• The Thai SEC introduces a Travel Rule for digital assets, taking effect on 27 February 2027.
• Providers must collect client information, check counterparties and verify self-custodial wallets.
• Transaction data must be kept for at least five years and made available to regulators.

Four obligations for crypto providers

The Thai SEC drew up the new rules in collaboration with the Anti-Money Laundering Office (AMLO). After public consultations between March and July 2026, a majority of stakeholders agreed with the proposed approach.

The rules impose four specific obligations on digital asset providers. First, they must establish policies and procedures for managing risks related to transfers. Second, they are required to collect information about clients and counterparties, carry out due diligence and, in transactions involving self-custodial wallets, verify ownership or control of those wallets. Third, providers initiating a transfer order must send information about both the sender and the recipient to the receiving provider. Fourth, there is a retention obligation of at least five years for all transaction data, so that regulators can request and inspect it.

Goal: less abuse of crypto platforms

SEC Secretary-General Pornanong Budsaratragoon states that the Travel Rule reduces the risk of crypto platforms being abused for money laundering, terrorist financing and other technology-related crimes. The new rules ensure that information about the parties involved is transmitted with every transfer, similar to the Travel Rule that already applies to traditional financial institutions in many other countries.

The introduction of such rules fits a broader international trend. For example, the US SEC is working on more modern rules for tokenized securities and other jurisdictions are also taking steps towards stricter regulation of digital assets. The Thai rules take effect on 27 February 2027, giving providers ample time to adapt their systems and processes accordingly.