The Bank of Thailand has expanded its monitoring of USDT transactions as part of a wider effort to track potential grey money flows moving through the country’s financial system. Authorities have identified that a significant share of stablecoin trading activity on local platforms involves foreign participants, raising concerns about compliance with domestic trading rules. According to officials, roughly 40 percent of USDT sellers operating on Thai crypto platforms are foreigners who should not be conducting transactions locally. As a result, stablecoin activity is now being reviewed alongside other channels commonly associated with unreported or informal flows, including cash movements, gold trading, and electronic wallets. While Thailand’s crypto market remains relatively small in absolute terms, regulators have signaled that size alone does not exempt it from closer scrutiny when risks to financial transparency are identified.
Despite daily crypto trading volumes averaging around 2.8 billion baht, far below the 10 to 15 billion baht seen in the foreign exchange market, the central bank has indicated that digital asset activity warrants attention due to its structure and cross border nature. Officials have stressed that crypto transactions can move quickly and outside traditional oversight frameworks, making them attractive for grey money activity if left unchecked. The central bank has stated that it intends to move beyond analysis and take a more active role in addressing structural vulnerabilities within the financial system. Policymakers have warned that failure to address these issues could have longer term implications for macroeconomic stability, particularly if unregulated flows continue to grow alongside formal markets.
The increased focus on USDT follows a broader directive from Thailand’s government calling for tighter oversight of digital assets and other value transfer channels. Recent measures include enhanced reporting requirements and stricter wallet identification rules aimed at improving traceability of large or unusual transactions. The initiative involves coordination between the central bank, tax authorities, and other enforcement agencies to monitor financial flows more effectively. The move comes amid rapid global growth in stablecoin usage, which has drawn increased regulatory attention worldwide. As stablecoins become more integrated into cross border payments and trading, Thailand’s approach highlights how regulators are balancing innovation with concerns over financial integrity and regulatory compliance.
