The Bank of Thailand strictly investigates USDT gray funds, with foreign traders accounting for 40% of sellers.

The Bank of Thailand officially includes USDT into its funds flow monitoring framework as an important measure to combat gray capital flows. According to the latest news, the central bank found that approximately 40% of USDT sellers on local Thai platforms are foreign traders, and such activities are considered “should not occur in Thailand.” This regulatory move marks an escalation in Southeast Asia’s attitude towards stablecoin regulation.

Specifics of the Regulatory Measures

The Bank of Thailand will subject USDT to stricter scrutiny alongside cash, gold transactions, and electronic wallet fund flows. The central bank governor emphasized that although the domestic crypto market in Thailand is relatively small, it could be used for illegal or gray capital flows, which may impact macroeconomic stability in the long run.

This action follows the directive issued by the Thai government on January 9, which requires stricter reporting and wallet identity verification rules for digital asset and gold transactions. The relevant regulation is being promoted jointly by the central bank, tax authorities, and other agencies, forming a cross-departmental regulatory effort.

Why USDT?

As the world’s largest stablecoin, USDT has a market capitalization of $18.679 billion, accounting for 5.94% of the cryptocurrency market. Data shows that USDT’s 24-hour trading volume reaches $8.519 billion, with ample liquidity. Due to its large scale and high liquidity, USDT has become an ideal tool for cross-border capital flows, which is the core concern of the Thai central bank.

Foreign traders account for 40% of USDT sellers on local platforms, indicating that USDT is indeed being used for cross-border capital transfer. The central bank’s concerns are justified—if not properly regulated, the cross-border movement of stablecoins could become a “transfer channel” for gray funds.

The Dual Implications of Regulation

Short-term impact

This regulatory measure will increase the cost and difficulty of using USDT in Thailand. Stricter identity verification rules mean that users’ transaction privacy will be compressed, potentially suppressing local USDT trading activity.

Long-term signal

The Thai central bank’s actions reflect a common global concern among central banks regarding stablecoins—preventing them from becoming loopholes in capital flow regulation. The message is clear: central banks worldwide will not allow stablecoins to “grow wildly” within their jurisdictions.

Insights for the Stablecoin Market

Thailand’s move could set a demonstration effect. Other Southeast Asian countries and global central banks may follow suit, imposing stricter regulations on stablecoins. This indicates that the process of stablecoins transitioning from “wild” to “tamed” is accelerating.

It is worth noting that this regulation does not mean banning USDT but rather integrating it into the existing financial regulatory framework. This is neutral to slightly positive for USDT’s long-term development—compliant stablecoins will gain more institutional recognition, while non-compliant use cases will be squeezed.

Summary

The Thai central bank’s move marks the transition of stablecoin regulation from “observation” to “action.” Data showing 40% of foreign traders highlights the real situation of cross-border capital flows, and the central bank’s concerns are justified. In the future, the environment for stablecoin usage will become more transparent and regulated, which could be beneficial for the industry’s long-term development, though it may increase compliance costs for users in the short term. Watching whether other countries follow suit will influence the global regulatory trajectory for stablecoins.