The Bank of Thailand, in collaboration with the Thai Securities and Exchange Commission (SEC), has initiated an audit targeting large transactions involving the popular stablecoin Tether (USDT). This new oversight aims to uncover potential efforts to evade regulatory scrutiny.
Governor Vitai Ratanakorn highlighted that the primary focus is on high-volume USDT movements that may be concealing illicit activities, particularly within the context of the country’s ongoing battle against money laundering and its cash-dominant informal economy.
Objectives of the Audit
The regulators are conducting detailed analyses on high-value trades, having already identified transactions structured to avoid asset disclosure. The findings from these audits will be compared by the Bank of Thailand and the SEC to determine any necessary enforcement actions.
Context of Stablecoin Regulation
Stablecoins like USDT provide a convenient method for transferring substantial amounts due to their rapid settlement capabilities across borders. This feature has drawn increased attention from regulators globally. In Thailand, while cryptocurrency trading remains legal, the central bank prohibits stablecoins and other digital assets from being utilized as payment methods.
According to data from CoinGecko, USDT is a leading asset in the Thai market, particularly on Bitkub, the country’s largest exchange, where it constitutes approximately 40% of the daily trading volume, which is nearly $26 million. The ongoing audit is part of a broader initiative to combat what officials term the “gray economy,” characterized by untraceable funds linked to fraud and other illicit operations.
In addition to stablecoin scrutiny, regulators are also focusing on high-value cash transactions, gold trades, and gambling-related accounts, further emphasizing the commitment to enhancing financial oversight.
This article is for informational purposes only and does not constitute financial advice.
