Bank of Thailand Screens USDT Trades in Grey Economy Crackdown
In brief
- Bank of Thailand screens abnormally large stablecoin transactions to detect evasion of banking disclosure rules
- Findings coordinated with Thailand's SEC, which regulates digital assets and holds enforcement authority
- Stablecoin screening targets grey economy alongside cash withdrawal checks and gold-trading controls
- Thai authorities seized $8.6 million in mining rigs and traced $122.5 million in romance-scam laundering
Stablecoin Screening and Regulatory Handoff
Bank of Thailand Governor Vitai Ratanakorn said the central bank has begun screening abnormally large stablecoin transactions, particularly in Tether's USDT, and has already flagged some that appear designed to sidestep disclosure requirements or move funds outside normal banking channels. The Bank of Thailand is coordinating with the SEC, which holds the authority to act on the findings.
USDT is the largest stablecoin and the most widely used trading pair on crypto exchanges. The stablecoin screening isn't happening in isolation. It's one strand of a multi-layered enforcement push.
Broader Controls on Cash and Gold
Since April, Thai banks have had to check the purpose of cash withdrawals of 5 million baht or more (about $150,000). The central bank says the rule cut large cash withdrawals by roughly 35%. From the fourth quarter, depositors bringing in 5 million baht or more in cash may have to declare where it came from.
Regulators are also tightening controls on high-value banknote exchanges and gold trading. Monthly gold withdrawals have fallen from about 4,000 kilograms to around 700. Banks have separately closed thousands of "mule" accounts linked to online gambling.
Enforcement Actions and Forward Strategy
Thai authorities have moved beyond screening into seizures. Thai police recently traced a romance-scam laundering network in which a single wallet moved more than $122.5 million in 10 months through cross-chain swaps. Investigators have also widened a mining probe into a $300 million Chinese laundering network, and authorities seized $8.6 million in illegal mining rigs powering scam compounds.
Looking forward, the central bank says it is working to develop a baht-backed stablecoin as part of a broader financial-infrastructure overhaul. The SEC's strategy leans into digital assets differently: the SEC's three-year plan pushes tokenization and crypto ETFs.
