Thailand Tightens Oversight of Large USDT Transactions as Central Bank Targets Shadow Economy

TL;DR

• The Bank of Thailand and the SEC are reviewing high-value USDT transactions over concerns about hidden ownership and remittance bypass.
• Individuals depositing 5 million baht ($150,000) or more in cash will be required to verify the source of their funds.
• The measures form part of a wider crackdown on the country’s shadow economy, covering banks, currency exchanges, bullion dealers, and digital assets.
• Thailand continues aligning its crypto regulations with international AML requirements through stronger monitoring and reporting rules for digital asset transactions.

Thailand is stepping up its oversight of high-value cryptocurrency activity as regulators broaden efforts to curb illicit financial flows. The Bank of Thailand (BOT) is working alongside the country’s Securities and Exchange Commission (SEC) to examine large stablecoin transactions, particularly those involving USDT, amid concerns that digital assets could be used to conceal ownership or bypass domestic remittance channels. 

The move comes as the central bank prepares to introduce stricter banking rules later this year, requiring anyone depositing 5 million baht (around $150,000) or more in cash to provide evidence showing where the funds originated.

New Rules Expand Scrutiny Beyond Cash

According to local reports, the upcoming measures form part of a broader campaign against Thailand’s so-called “grey economy,” economic activity that operates outside normal regulatory oversight.

Governor Vitai Ratanakorn said the new framework is designed to strengthen financial transparency rather than serve as a temporary enforcement campaign. The central bank plans to expand compliance requirements for commercial banks, currency exchange businesses, bullion dealers, and entities handling large digital asset transactions. 

The latest proposal follows restrictions introduced earlier this year that required customers withdrawing at least 5 million baht in cash to explain why electronic transfers or other payment methods could not be used. Authorities said those rules contributed to a 35% decline in large cash withdrawals, prompting regulators to introduce similar verification requirements for deposits. 

USDT Transactions Come Under the Spotlight

Stablecoins have become another area of focus, especially as USDT faces increased scrutiny in Europe.

The Bank of Thailand and the SEC are reviewing sizeable USDT transactions amid concerns that some transfers may obscure beneficial ownership or circumvent traditional cross-border payment systems. Officials are also assessing whether certain market participants are using stablecoins as a channel for unregulated capital movement. 

Earlier this year, Governor Ratanakorn revealed that roughly 40% of USDT sellers on Thai platforms were foreign nationals, raising additional questions about compliance with domestic trading rules and anti-money laundering operations. Although Thailand’s crypto market remains relatively small compared with the country’s foreign exchange market, regulators believe closer monitoring is necessary as digital asset usage expands. 

SEC Strengthens Digital Asset Compliance

The crackdown also aligns with broader regulatory initiatives already underway.

In June, Thailand’s SEC launched a public consultation on new Travel Rule requirements for digital asset businesses. The proposal would require licensed platforms to collect and transmit sender and recipient information for crypto transfers, bringing Thailand closer to international anti-money laundering standards. 

The regulator has also outlined additional measures aimed at improving blockchain transaction monitoring, strengthening fund-tracing capabilities, and enhancing oversight of stablecoin transactions conducted through licensed digital asset operators. These initiatives are being developed in cooperation with the Bank of Thailand and the country’s Anti-Money Laundering Office. 

Thailand has generally positioned itself as one of Southeast Asia’s more active digital asset markets, introducing crypto-friendly policies while maintaining strict licensing requirements for exchanges and service providers.

The post Thailand Tightens Oversight of Large USDT Transactions as Central Bank Targets Shadow Economy appeared first on Blockonomi.