Thailand SEC proposes 5 million Baht daily cap on stablecoin transfers — Why?

Thailand’s Securities and Exchange Commission (SEC) has proposed a set of new rules to regulate stablecoin transactions conducted through licensed digital asset operators.

Announced on 12th November, the draft notification aims to prevent cryptocurrencies and stablecoins from being used for money laundering, cybercrime, and bypassing regulations governing international money transfers.

Here, it’s worth noting that this update came soon after September’s public consultation. During the same, the regulator collected feedback from industry participants.

What is the purpose behind the 5 million Thai baht limitations?

As it stands, the SEC has incorporated those changes into the latest draft. It is now seeking further public comments until 26th November.

In this, one of the key proposals is to introduce a daily transfer limit of 5 million Thai baht per customer at each regulated digital asset operator. That said, the limit would apply separately to incoming and outgoing stablecoin transfers. However, the value of these transactions must also be consistent with the customer’s declared income and financial position.

However, it’s important to note that transfers between a customer’s own accounts at two SEC-supervised operators would be exempt from the limit, provided both operators follow the Travel Rule.

SEC’s game plan for stablecoin regulations

Simultaneously, the SEC also wants to strengthen wallet ownership verification. In this, the SEC has enabled customers to deposit stablecoins from their own verified wallets and withdraw them to wallets registered in their names.

Additionally, operators would also need to follow the Travel Rule, analyze customers, identify suspicious accounts, and track transactions connected to high-risk wallets.

These requirements would be done in order to make it harder for criminals to move illicit funds through regulated platforms.

Other limitations that are a must

Finally, the proposal also introduces stricter responsibilities for exchanges and brokers. Exchanges would have to publicly disclose their market makers and the digital assets for which they provide liquidity. Meanwhile, brokers would be prohibited from using liquidity providers for stablecoin-to-Thai baht trading pairs.

Besides that, brokers and dealers offering off-platform transactions would face a minimum transaction threshold of 3 million baht and would have to publish trading prices for transparency. Brokers would no longer be allowed to arrange off-platform trades directly between customers.

Taken together, these steps would help the SEC combat crimes that are concerning the stablecoin ecosystem in Thailand.

Final Summary

• The proposal has introduced a daily transfer limit of 5 million Thai baht per customer at each regulated digital asset operator.
• Brokers and dealers offering off-platform transactions will face a minimum transaction limit of 3 million baht.