Thailand is expanding its efforts to combat illicit financial activity by increasing scrutiny of large Tether (USDT) transactions as part of a broader crackdown on the country’s “grey economy.”
The initiative, led by the Bank of Thailand (BOT) in collaboration with the Securities and Exchange Commission (SEC), forms part of a wider regulatory campaign targeting financial channels that could be used to facilitate money laundering, tax evasion, and other unauthorized capital flows. Alongside stablecoin transactions, regulators are also strengthening oversight of high-value cash deposits, gold trading, and currency exchange activities. (nationthailand)
According to Bank of Thailand Governor Vitai Ratanakorn, authorities are introducing additional monitoring measures after identifying suspicious patterns across several financial sectors. One area of focus is high-volume USDT trading, where officials found that a significant portion of sellers on Thai trading platforms are foreign participants, raising compliance and anti-money laundering concerns. (nationthailand)
The new measures are expected to take effect during the fourth quarter and will require financial institutions to strengthen customer verification procedures for large cash deposits. Individuals depositing 5 million baht or more will be required to provide documentation explaining the source of their funds, complementing existing rules governing large cash withdrawals. (nationthailand)
Thailand’s central bank stated that earlier restrictions on high-value cash withdrawals had already reduced large cash transactions nationwide, prompting regulators to extend similar oversight to incoming deposits. Authorities are also reviewing additional monitoring mechanisms for large banknote exchanges, particularly transactions involving the conversion of high-denomination notes without a clear commercial purpose. (nationthailand)
Digital assets have also become a growing priority for regulators. While cryptocurrency trading volumes remain considerably smaller than Thailand’s traditional foreign exchange market, officials believe stablecoins can be used to move funds quickly across borders, making them a potential channel for illicit financial activity.
As part of the expanded framework, commercial banks and regulated financial institutions will be expected to identify and report unusual cryptocurrency-related transactions alongside suspicious cash movements and precious metals trading. The SEC is working with the central bank to examine high-value USDT transactions as regulators seek greater transparency across digital asset markets. (nationthailand)
The campaign also targets Thailand’s bullion market. Regulators have identified cases where large quantities of gold were purchased digitally before being withdrawn physically on the same day, a pattern authorities believe may be exploited to obscure the movement of funds. Financial institutions will now be required to report these activities to the country’s Anti-Money Laundering Office (AMLO) for further review. (nationthailand)
Thailand has steadily expanded its oversight of digital assets over the past several years. Earlier regulatory updates strengthened controls on foreign peer-to-peer crypto platforms, enhanced Know Your Customer (KYC) requirements, and reinforced compliance with international anti-money laundering standards. These measures reflect the country’s broader strategy of supporting innovation in digital assets while maintaining strict regulatory supervision. (crypto.news)
The latest initiative demonstrates Thailand’s continued efforts to integrate cryptocurrency oversight into its wider financial regulatory framework. By monitoring high-value USDT transactions alongside traditional financial activities, authorities aim to improve transparency, strengthen financial integrity, and reduce opportunities for illicit capital flows within the country’s financial system. (nationthailand)
