The Bank of Thailand (BOT) is seeking public feedback on a proposed overhaul of the regulatory framework for licensed money changers authorized by the finance minister, under the Exchange Control Act, to buy and sell foreign banknotes separately from commercial banks and specialized financial institutions. The BOT published the draft principles on August 19, 2026, for public consultation, with comments accepted through September 18, 2026.
If adopted in its current form, the new framework would substantially raise licensing standards, require existing licensees to undergo a review and upgrade process, temporarily freeze new applications in 2027, and reduce application intake rounds from 2028 onward, with significant implications for both existing operators and prospective new entrants.
The overhaul initiative stems from the BOT’s recognition of a need to prevent the use of licensed money changers as channels for financial crime. The stated objectives are to build public confidence, ensure the safety of financial service users, and align the supervisory framework with the current risk profile of the business and evolving market conditions.
Upgraded Licensing Standards
The BOT intends to significantly revise the licensing framework, including requirements relating to registered capital, branch management, operational standards, and customer transaction limits. Detailed criteria have not yet been released and are expected to be subject to further consultation. All existing licensees will be required to upgrade to meet the new standards and submit evidence of compliance for BOT review on a case-by-case basis. Existing licensees that are unable to satisfy the upgraded requirements may face regulatory consequences, subject to the final framework and BOT review process.
Freeze and Reopening
The BOT will temporarily stop accepting new license applications throughout 2027 to focus resources on inspecting and upgrading existing money changers. Any party wishing to obtain a new money changer license must submit its application by the end of December 2026.
New applications will be accepted again once the upgraded supervisory framework is in place in 2028. From that point onward, the BOT may reduce application intake rounds from four per year to two per year to improve the quality and efficiency of assessments under the new criteria.
To summarize the timing of these developments:
- End of December 2024: Close of current new applications acceptance period.
- Throughout 2027: Application freeze; BOT inspects and upgrades all existing licensees.
- 2028: Reopening of new applications under the upgraded framework; possible reduction to two intake rounds per year.
Implications for Existing Money Changers
Every current licensee will need to meet significantly higher standards across capital, branch management, operational standards, and customer transaction limits. This will likely require substantial capital investment, operational restructuring, and system upgrades to satisfy the BOT’s individual review. All enhancement measures must be completed and submitted during 2027, giving money changers a limited compliance window. Money changers unable to meet the new criteria face the risk of license revocation.
Implications for Prospective New Entrants
Any entity planning to enter the money-changing business must file its application by December 2026 or face a year-long wait until 2028. Even after reopening, the potential halving of application intake rounds will reduce the windows available for new market entry going forward.
Market Impact
Higher capital and operational requirements may push smaller money changers out of the market, potentially leading to industry consolidation. However, the reforms are designed to enhance the safety and reliability of money-exchange services for end users and the broader financial system.
Existing licensed money changers should assess their current compliance posture against the anticipated new standards and begin preparing for the 2027 upgrade deadline. Prospective new entrants should prioritize filing their applications before the December 2026 cutoff to avoid the temporary freeze period. All interested parties should consider submitting comments during the public consultation period, which runs through September 18, 2026.
