Bank of Thailand tightens stablecoin regulation, focusing on investigating large abnormal USDT transactions.

The Bank of Thailand (BOT) has begun using data analysis tools to screen for anomalous large-value transactions in the stablecoin market, focusing on Tether-issued USDT, to crack down on illegal fund flows and "gray economy" activities. BOT Governor Vitai Ratanakorn said initial screening has found some transactions suspected of deliberately evading disclosure requirements or transferring funds by bypassing the traditional banking system. As regulatory authority over digital assets falls under Thailand’s Securities and Exchange Commission (SEC), the BOT will refer relevant leads to the SEC for further investigation. The stablecoin probe is part of Thailand’s campaign to combat the "gray economy". Since April this year, Thailand has required banks to verify the purpose of cash withdrawals exceeding 5 million baht (about $150,000) per transaction, leading to a roughly 35% drop in large cash withdrawals. Starting in the fourth quarter, large cash deposits will also be required to declare their source of funds. Regulators have also tightened oversight over gold trading, large cash exchanges, and "money mule accounts" linked to online gambling, with monthly gold withdrawals falling from around 4,000 kg to roughly 700 kg. In recent years, Thailand has stepped up its crackdown on crypto-related crimes. Police recently dismantled a cross-chain money laundering network, where the involved wallets transferred over $122.5 million in funds within 10 months, and are still investigating a $300 million cross-border money laundering case and illegal crypto mining operations. Meanwhile, Thailand is advancing the development of a compliant crypto market: the Thai SEC has proposed a three-year development plan covering tokenized assets and crypto ETFs, while the BOT is pushing forward research and development of a baht-pegged stablecoin as part of financial infrastructure upgrades.