The Bank of Thailand (BOT) is intensifying its monitoring of Tether (USDT) trading as part of a broader government campaign targeting so-called “grey money” flows and illegal financial activity across the economy.
The move reflects growing concern that stablecoins may be used to move illicit funds through local crypto platforms, especially given the scale of foreign participation in Thailand’s digital asset market.
Foreign Activity Raises Red Flags
According to the BOT, around 40% of USDT sellers on Thai crypto platforms are foreign nationals who “should not be trading” in the country. This finding has triggered heightened scrutiny, as regulators worry such activity could mask cross-border money laundering or other illegal transactions routed through stablecoins.
While Thailand’s domestic crypto market sees daily trading volumes of roughly 2.8 billion baht, the central bank believes the issue is not size but risk concentration and the opacity of certain flows.
What Authorities Mean by “Grey Money”
In the Thai regulatory context, “grey money” refers to funds linked to activities that are illegal or semi-legal, including:
- Online gambling and scam networks
- Human trafficking operations
- Underground lending and informal finance
- Potential vote-buying during election periods
Officials fear stablecoins like USDT can be used as a fast, borderless bridge between cash-based crime and the formal financial system.
Expanded Monitoring Beyond Crypto
The BOT is now broadening its oversight beyond crypto exchanges alone. Stablecoins are being reviewed alongside:
- Cash movements
- Gold trading
- E-wallet and digital payment flows
This wider lens is intended to capture how illicit funds move across different financial channels rather than focusing on crypto in isolation.
New Enforcement Measures
The monitoring effort follows a directive from Thailand’s prime minister and includes several concrete steps:
- Travel Rule enforcement, requiring identification of senders and receivers for wallet-to-wallet crypto transfers
- Mandatory reporting by commercial banks of large or unusual transactions to the central bank
- Creation of a national data bureau to centralize financial information and enable near real-time transaction tracking
Central Bank Signals a More Active Role
BOT Governor Vitai Ratanakorn said the central bank will move beyond analysis and take a more hands-on approach to resolving structural weaknesses in the financial system. He warned that failing to address grey-money flows could pose long-term risks to Thailand’s macroeconomic stability.
The shift suggests Thailand is entering a tougher enforcement phase, with stablecoins like USDT now firmly on regulators’ radar as authorities attempt to close gaps between digital assets and traditional finance.
