Thailand’s Securities and Exchange Commission (SEC) has unveiled a draft plan introducing strict limits on stablecoin transactions for crypto platform users, aiming to strengthen safeguards against money laundering and financial crime.
Stablecoin Transfer Limits and Restrictions
The proposal would cap daily stablecoin deposits and withdrawals at 5 million baht, equivalent to approximately $147,750, for each customer per platform. Both incoming and outgoing transfers would be subject to this limit, with the primary objective of preventing large-scale illicit financial flows.
In addition to the transfer cap, the SEC draft mandates that stablecoins can only be moved between accounts or wallets owned by the same individual. Cross-wallet transfers involving third parties through regulated platforms would not be permitted under these new rules. However, direct peer-to-peer transfers executed on blockchains that fall outside the jurisdiction of regulated platforms would remain unaffected by these changes.
The daily transaction limits would not apply to certain categories. Transfers between a user’s own accounts across different SEC-supervised platforms, transactions by licensed operators for business purposes, activities by market makers, and specific operations related to digital token offerings, refunds, or actions approved by the Bank of Thailand would be exempt from the cap.
| Transfer Type | Daily Cap Applies? |
|---|---|
| User deposit/withdrawal per platform | Yes (5 million baht) |
| Between user’s own accounts on supervised platforms | No |
| Operator’s business transactions | No |
| Market maker activity | No |
| Peer-to-peer blockchain transfers | No |
The SEC pointed out that the value of stablecoin transactions through an account must align with the customer’s declared income and financial profile. Operators would be responsible for ensuring that a user’s activity matches their financial circumstances.
Transfers between personal wallets would remain unrestricted, but users will be limited to moving up to 5 million baht in stablecoins daily within regulated platforms, unless qualifying for exempt categories.
Compliance, Monitoring, and Market Maker Disclosure
In alignment with international standards, the SEC draft requires platforms to apply the Travel Rule, which involves tracking and sharing information about the originators and beneficiaries of cryptocurrency transactions. Exchanges would be obligated to perform enhanced customer profiling, screening, and use blockchain analytics tools to identify accounts linked to high-risk activities or known watchlists.
The draft also introduces stricter requirements for crypto exchanges regarding market transparency. Exchanges would need to publicly disclose their market makers—the entities providing liquidity to the market—and detail the specific assets each market maker supports. This change is intended to increase clarity and accountability in trading activities.
For brokers, the draft includes a ban on the use of liquidity providers for trading pairs involving stablecoins and the Thai baht. Moreover, any off-platform transactions carried out by brokers and dealers would need to be at least 3 million baht, or around $88,528, with mandatory disclosure of trading prices for such deals.
Mini dictionary: Market maker – A market maker is a firm or individual that provides liquidity in financial markets by continuously buying and selling assets, ensuring smoother trading and reduced price volatility.
The SEC said the overarching goal of these new measures is to curb the use of digital assets in money laundering operations, cybercrime, and the circumvention of cross-border transfer rules. Authorities also seek to address unexplained trading patterns, particularly involving USDT, a leading US-dollar stablecoin issued by Tether. Both the central bank and the securities regulator have begun deploying data analytics to monitor unusual transactions as part of the country’s efforts to clamp down on the so-called “grey economy.”
The SEC stated that platforms must ensure stablecoin transfers are consistent with each customer’s financial status and that new transparency requirements will help prevent abuse of digital assets for illicit activities.
The draft rule is now open for public consultation, and feedback will be accepted until November 26. The proposal follows a recent hearing on stablecoin oversight conducted in September.
