Thailand moves to cap stablecoin deposits and withdrawals at 5 million baht a day and bar transfers to other people's wallets

Thailand's Securities and Exchange Commission wants to limit how much stablecoin money can flow through the country's licensed crypto platforms. Under a draft put out for public comment, an individual customer could deposit no more than 5 million baht, about $148,000, in stablecoins a day at each regulated operator, with the same cap applied separately to withdrawals.

Transfers would be restricted to accounts and wallets owned by the same person, so sending stablecoins to or from someone else's wallet through a platform would be barred. Operators would have to apply the Travel Rule, screen customers and use blockchain analytics to flag links to high-risk wallets. The Block reports that several activities would be exempt from the cap, including transfers between a customer's own accounts on supervised platforms and market-making.

The draft also reaches the plumbing of the market. Exchanges would have to disclose their market makers and the assets each supports, and brokers could not use liquidity providers for stablecoin-baht pairs. Certain off-platform deals would face a 3 million baht minimum.

The regulator says the aim is to stop digital assets from being used for money laundering, cybercrime and getting around international money transfer rules. The proposal follows a September consultation, and The Block reports comments are due November 26.