The Bank of Thailand is using data analytics to screen abnormally large stablecoin transactions, particularly in Tether's USDT, for signs of illicit finance as part of a widening crackdown on the shadow economy. Governor Vitai Ratanakorn said the central bank has flagged transactions that appear designed to sidestep disclosure requirements or move funds outside normal banking channels, according to Thai outlet Thansettakij. The screening is coordinated with the Securities and Exchange Commission, which holds regulatory authority over digital assets in Thailand, and forms one strand of a broad campaign against what officials call the 'grey economy' — an effort requiring multiple parallel measures including new rules on large cash withdrawals, gold trading monitoring, and closure of thousands of online-gambling 'mule' accounts.
Bank of Thailand Screens USDT Transactions for Illicit Finance
The Bank of Thailand 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. Because the Securities and Exchange Commission, rather than the central bank, directly regulates digital assets in Thailand, 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, according to CoinGecko data.
Thailand Tightens Controls on Cash Withdrawals and Gold Trading
The stablecoin screening is one strand of a broad campaign against what Thai officials call the 'grey economy.' Since April, banks have had to check the purpose of cash withdrawals of 5 million baht (about $150,000) or more, a rule the central bank says 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, where officials noticed buyers ordering gold through an app in the morning and collecting it from shops in the afternoon. Suspicious activity is now reported to Thailand's Anti-Money Laundering Office, and 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.
Thai Police Trace $122.5 Million Romance-Scam Laundering Network
Thailand has become a hotspot for crypto-enabled crime, and its agencies have been chasing it aggressively. 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, as part of Interpol's Operation First Light. In recent months, investigators have also widened a mining probe into a $300 million Chinese laundering network and seized $8.6 million in illegal mining rigs powering scam compounds.
Thailand SEC Pushes Tokenization and Crypto ETFs in Three-Year Plan
At the same time, the country is courting legitimate crypto: the SEC's three-year plan pushes tokenization and crypto ETFs, and the central bank says it is working to develop a baht-backed stablecoin as part of a broader financial-infrastructure overhaul.
FAQ
What is the Bank of Thailand doing to combat illicit stablecoin transactions?
The Bank of Thailand is using data analytics to screen abnormally large stablecoin transactions, particularly in Tether's USDT, for signs of illicit finance. Governor Vitai Ratanakorn said the central bank has flagged transactions that appear designed to sidestep disclosure requirements or move funds outside normal banking channels, and is coordinating with the Securities and Exchange Commission, which holds regulatory authority over digital assets.
How has Thailand reduced large cash withdrawals since April?
Since April, banks have had to check the purpose of cash withdrawals of 5 million baht (about $150,000) or more. The central bank says this 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.
What crypto-enabled crime has Thai police recently uncovered?
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, as part of Interpol's Operation First Light. In recent months, investigators have also widened a mining probe into a $300 million Chinese laundering network and seized $8.6 million in illegal mining rigs powering scam compounds.
