Thailand’s central bank targets USDT and cash flows in a crackdown on gray money to combat illicit financial activities. The move aims to prevent corruption, shadow economies, and scam-related losses.
The Bank of Thailand (BoT) has launched an intensified surveillance program targeting stablecoins like USDT and cash transactions amid growing concerns over 'gray money' in the country's economy. This initiative comes as a response to significant illicit gains from Chinese-affiliated scam centers, with reported losses reaching 115 billion THB ($3.4 billion) in 2025.
In collaboration with Thailand’s Securities and Exchange Commission (SEC), BoT is auditing high-volume stablecoin transactions, focusing on USDT and cash flows through currency exchanges. Governor Vitai Ratanakorn emphasized that these measures are part of a long-term strategy to identify and stop illicit financial activities.
The crackdown extends beyond just stablecoins; it also targets commercial bank compliance duties in cash networks, forex trading, gold bullion transactions, and suspicious stablecoin operations. High-value cash transactions now require source-of-funds declarations, while exchanges of large volumes of high-denomination notes for smaller ones without a clear business reason are being closely monitored.
Thailand has historically been seen as a crypto haven due to its lax regulations on digital assets. However, the central bank still prohibits stablecoin and cryptocurrency payments, with only limited legal trading allowed through platforms like Bitkub. The recent measures reflect a shift towards stricter regulatory oversight despite ongoing challenges in distinguishing legitimate transactions from illicit ones.
While these steps aim to combat corruption and protect against money laundering, critics argue that similar past crackdowns have inadvertently affected innocent individuals and businesses, highlighting the need for more nuanced approaches moving forward.
Traders should remain vigilant as this new regulation could impact both stablecoin usage and cash-based transactions. The BoT’s focus on USDT suggests a potential market shift away from this popular stablecoin towards alternatives or fiat currencies.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.