The Bank of Thailand is intensifying its scrutiny over cryptocurrency transactions, focusing specifically on stablecoins as part of a wider initiative to tackle illicit financial activities. Governor Vitai Ratanakorn announced over the weekend that in collaboration with the Securities and Exchange Commission (SEC), the central bank is employing data analytics to review unusually high-volume trades of stablecoins such as Tether's USDT.

Initial assessments have already highlighted several transactions that seem designed to obscure ownership and facilitate money transfers outside conventional banking systems. These findings have been forwarded to the SEC, which has the legal authority to take action against such digital asset activities in Thailand.

Ratanakorn emphasized that the strategies being implemented aim for long-term impact, contrasting with temporary solutions. The stablecoin audit represents just one aspect of a broader campaign against what officials term the grey economy. This term refers to the movement of suspicious cash that operates outside typical financial oversight.

As part of these efforts, since April, individuals withdrawing 5 million baht or more (approximately $150,000) are required to provide their banks with a commercial justification for the transaction. The central bank reports that this measure has led to a significant decrease in large cash withdrawals, with a noted reduction of about 35%. Furthermore, starting from the fourth quarter, depositors who bring in similar amounts may face additional requirements to disclose the origins of their funds.

In addition to stablecoins, regulators have tightened their oversight on gold trading, where monthly withdrawals have dramatically dropped from around 4,000 kilograms to just 700. The authorities have also shut down numerous accounts suspected of being exploited for online gambling purposes.

A recent investigation by Thai police, in partnership with Interpol, discovered a money laundering operation linked to romance scams, where a single suspect reportedly managed a wallet that moved over $122.5 million within a span of 10 months.

This material is for informational purposes only and should not be considered financial advice.