Thailand strengthens supervision of large-scale USDT transactions, central bank targets shadow econo

TL;DR

Thailand strengthens supervision of high-value cryptocurrency transactions

The Bank of Thailand and the Securities and Exchange Commission are reviewing high-value USDT transactions, fearing that they may hide ownership or bypass remittance channels. When individuals deposit cash of 5 million baht (approximately US$150,000) or more, they need to verify the source of funds. These measures are part of a crackdown on the shadow economy and cover banks, currency changers, gold traders and digital assets. Thailand is aligning its encryption regulations with international anti-money laundering requirements by strengthening monitoring and reporting rules for digital asset transactions.

Thailand strengthens supervision of high-value cryptocurrency transactions and strictly checks USDT and cash deposits

Thailand is increasing supervision of high-value cryptocurrency activities to curb illegal capital flows. The Bank of Thailand is working with the Securities and Exchange Commission to review large-scale stablecoin transactions, especially those involving the USDT. The move stems from concerns that digital assets may be used to hide ownership or bypass domestic remittance channels. At the same time, the central bank plans to implement stricter banking rules later this year, requiring any individual who deposits cash of 5 million baht (about US$150,000) or more to provide proof of the source of the funds.

New regulations expand regulatory scope and are no longer limited to cash

According to local media reports, the upcoming measures are part of Thailand's broader campaign to crack down on the so-called "grey economy"-economic activity that is outside normal regulation. Central bank governor Vitai Ratanakorn said the new framework was aimed at enhancing financial transparency rather than temporary enforcement actions. The central bank plans to expand compliance requirements for commercial banks, currency exchange businesses, gold traders and entities that handle transactions in large digital assets. Previously, Thailand introduced restrictions earlier this year requiring customers who withdraw at least 5 million baht in cash to explain why they cannot use electronic transfers or other payment methods. Authorities said the rules reduced large cash withdrawals by 35%, prompting regulators to introduce similar verification requirements for deposits.

USDT transactions come into focus

stablecoins have become another focus, especially as the USDT faces greater scrutiny in Europe. The Bank of Thailand and the Securities and Exchange Commission are reviewing large USDT transactions, fearing that some transfers may hide actual beneficiaries or circumvent traditional cross-border payment systems. Officials are also assessing whether certain market participants are using stablecoins for unregulated capital flows. Earlier this year, central bank governor Ratanakorn revealed that about 40% of USDT sellers on Thai platforms are foreign citizens, raising further questions about domestic transaction rules and anti-money laundering compliance. Although Thailand's cryptocurrency market is still small relative to the foreign exchange market, regulators believe that as the use of digital assets expands, it is necessary to strengthen surveillance.

The Securities and Exchange Commission of Thailand strengthens digital asset compliance

The crackdown is also consistent with broader regulatory initiatives already under way. In June this year, the Securities and Exchange Commission of Thailand launched a public consultation on the new version of the "Travel Rules" requirements for digital asset companies. The proposal will require licensed platforms to collect and transmit sender and recipient information of cryptocurrency transfers, bringing Thailand closer to international anti-money laundering standards. In addition, regulators have developed other measures aimed at improving blockchain transaction monitoring, strengthening fund tracking capabilities, and enhancing supervision of stablecoin transactions conducted through licensed digital asset operators. These measures are being advanced in cooperation with the Bank of Thailand and the Anti-Money Laundering Office. Thailand has always positioned itself as one of the more active digital asset markets in Southeast Asia, launching cryptocurrency-friendly policies while maintaining strict licensing requirements for exchanges and service providers.