The Bank of Thailand has placed USDT trading under closer monitoring after identifying signs that stablecoin activity on domestic platforms may be linked to grey money flows. According to local media reports, central bank officials found that roughly 40% of USDT sellers active on Thai platforms are foreign participants who may not be authorized to trade in the country. The findings have prompted authorities to include stablecoins alongside cash, gold, and e-wallet transactions in expanded financial surveillance efforts.
While Thailand’s domestic crypto market remains relatively small, officials signaled that scale alone does not exempt digital assets from scrutiny. Daily crypto trading volumes average about 2.8 billion baht, compared with 10 billion to 15 billion baht in the foreign exchange market. Regulators argue that even modest volumes can be significant if they function as conduits for unreported or illicit capital movements.
Central Bank Frames Crypto Oversight
Governor Vitai Ratanakorn said the central bank intends to move beyond passive observation and take a more active role in addressing structural risks. He warned that unchecked grey money channels could pose longer-term threats to macroeconomic stability if left unresolved. The Bank of Thailand’s approach reflects a broader institutional shift toward treating crypto-linked flows as part of the financial system rather than a niche activity.
The move follows a Jan. 9 directive from Prime Minister Anutin Charnvirakul calling for tighter controls on gold trading and digital assets. The measures include stricter reporting requirements, enhanced wallet identification rules, and coordination between the central bank, the Revenue Department, and law enforcement agencies. Together, the steps aim to improve visibility into large or unusual transactions that may bypass traditional oversight.
Stablecoin Growth Complicates Regulatory Calculus
Thailand’s review comes as stablecoins continue to expand in global usage, both for legitimate payments and for cross-border capital movement. USDT remains the dominant stablecoin by circulation, giving it outsized influence in emerging markets where access to dollars can be limited. For regulators, that scale presents a challenge in balancing financial innovation with enforcement of anti-money laundering standards.
Data from blockchain analytics firms indicate that stablecoins account for a growing share of illicit crypto transaction volumes, reinforcing concerns among central banks and finance ministries. Issuers such as Tether have emphasized their cooperation with law enforcement, including wallet freezes and transaction monitoring tied to sanctions enforcement. Despite these actions, USDT’s widespread adoption has kept it under persistent regulatory and political scrutiny.
Regional Signal to Crypto Markets
For market participants, Thailand’s decision signals that Southeast Asian regulators are increasingly aligning crypto oversight with traditional financial supervision. By integrating stablecoins into existing frameworks for monitoring capital flows, authorities are seeking to limit regulatory arbitrage while preserving broader market stability. The approach mirrors trends in other jurisdictions where stablecoins are viewed less as speculative assets and more as functional components of the payment system.