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Bank of Thailand targets USDT and cash flows in gray money crackdown
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The Bank of Thailand is intensifying its surveillance of stablecoins, particularly USDt (USDT), as part of a broader crackdown on money laundering and illicit finance in the country's "gray money" economy. The central bank is collaborating with the Securities and Exchange Commission to audit high-volume stablecoin transactions, cash flows, and currency exchanges, targeting funds linked to scam call centers and other suspicious activities.
Thailand has long struggled with Chinese-affiliated scam centers that funnel illicit gains through informal channels, creating a gray economy that evades official oversight. Bank of Thailand Governor Vitai Ratanakorn stated, "The measures we are implementing are not short-term fixes; they require the continuous deployment of multiple parallel strategies," as reported by The Nation. The gray economy largely consists of cash from dubious origins, with scam losses in 2025 estimated at $3.4 billion, accompanied by 173 million scam calls and texts.
Stablecoins have become a preferred method for transferring large sums due to their near-instant cross-border settlement capabilities. To address this, the new measures expand commercial bank compliance duties to cover cash networks, currency exchanges, gold bullion trading, and suspicious stablecoin transactions. High-value cash transactions will require source-of-funds declarations, and exchanges of large banknotes for smaller denominations without clear business reasons will be monitored. Cash deposits exceeding 5 million baht ($150,000) must also be fully disclosed.
Despite being touted as a crypto haven, Thailand still outlaws digital asset and stablecoin payments, though crypto trading remains legal. The country's largest exchange, Bitkub, processes approximately $26 million in daily volume, with nearly 40% involving forex and the USDT/THB pair being the most popular, according to CoinGecko. The central bank's focus on USDT reflects its dominance in local trading.
The crackdown has already caused significant disruptions. In 2025, Thai banks froze three million accounts in an effort to combat mule accounts and gray capital, but the sweep inadvertently affected thousands of legitimate businesses and individuals. Media reports described the situation as a "scammer crackdown gone wrong," highlighting the challenge of balancing enforcement with avoiding collateral damage.
Looking ahead, the Bank of Thailand plans to maintain continuous, multi-pronged strategies rather than relying on short-term fixes. The expanded monitoring of cash, forex, and stablecoins signals a sustained effort to curb illicit financial flows, though the impact on legitimate crypto businesses and traders remains a concern. The effectiveness of these measures will depend on their implementation and the ability to minimize unintended consequences for the broader economy.
