Bank of Thailand increases scrutiny of USDT use in the country.

• Bank of Thailand monitors USDT trading.
• Stablecoins come into focus against grey money.
• Authorities tighten controls over foreign flows.

The Bank of Thailand has begun including USDT transactions in its financial monitoring system as part of a broader crackdown on so-called "grey money." This initiative follows... The fact that a significant portion of stablecoin transactions on local platforms involve foreign participants has raised concerns about undeclared capital flows.

According to Governor Vitai Ratanakorn, approximately 40% of USDT sellers operating on Thai platforms are foreigners who “should not be trading” in the country. Given this scenario, stablecoins have come under scrutiny alongside physical cash transactions, gold trading, and transfers via digital wallets, all considered potential channels for irregular financial practices.

Stricter monitoring is occurring even though the domestic cryptocurrency market is relatively small. Daily trading volume hovers around 2,8 billion baht, well below the 10 to 15 billion baht traded daily in the traditional foreign exchange market. Even so, authorities believe that the small size does not eliminate the risk of cryptocurrencies being used for money laundering or evading capital controls.

"We will no longer limit ourselves to just analysis."

said Vitai.

“We will extend a hand to lead the solution to structural problems. If these issues are not addressed, they will ultimately affect long-term macroeconomic stability.”

The central bank's stance follows a directive announced on January 9 by Prime Minister Anutin Charnvirakul, who determined the tightening of supervision. Regarding the trading of gold and digital assets, the measures include stricter reporting requirements and the enforcement of rules for identifying digital wallets, in a coordinated effort between the central bank, the Federal Revenue Service, and other regulatory agencies.

Increased scrutiny in Thailand parallels the global expansion of stablecoins. The total supply in this segment already exceeds US$292 billion, with USDT accounting for approximately 64% of the total in circulation. This growth has also brought regulatory challenges, especially given the increased use of stablecoins in illicit transactions, which by 2025 represented 84% of this type of activity in the cryptocurrency market.

Tether, the issuer of USDT, claims to have adopted a proactive wallet freeze policy since December 2023, in line with international sanctions lists. According to the company, more than US$3 billion in USDT has already been blocked in cooperation with authorities from different countries, including a recent freeze of more than US$182 million linked to addresses on the Tron network.

Despite enforcement actions, USDT remains the subject of global debate regarding its use in economies with financial constraints, keeping stablecoins at the center of international regulatory discussions.