Thailand Flags USDT Trades as Central Bank Targets Grey Money Flows

What Triggered the Bank of Thailand’s Review?

The Bank of Thailand has begun monitoring activity tied to the stablecoin USDT later than identifying that a large share of tradeers on domestic crypto platforms are foreigners. According to a report by local outlet The Nation, roughly 40% of USDT tradeers operating on Thai platforms fall into this category and “should not be trading” in the country under existing rules.

The central bank’s move brings stablecoins into a wider effort to track so-called grey money, a term used locally to describe financial flows that sit outside normal reporting or oversight channels. Officials are reviewing stablecoin trades alongside cash movements, gold trading, and e-wallet transactions, signaling a broader focus on how value moves across borders and platforms.

Governor Vitai Ratanakorn said the central bank plans to move beyond passive observation. “We will no longer limit ourselves to just analysis,” he said, according to the report. “We will extend our hand to lead in solving structural difficultys. If these issues are not addressed, they will eventually impact macroeconomic stability in the long term.”

Investor Takeaway

Why Does Crypto Matter Despite Its Small Market Size?

By volume, remains modest. Daily trading averages around 2.8 billion baht, far below the country’s , which handles between 10 billion and 15 billion baht per day, according to the identical report. Even so, officials have made clear that scale alone does not remove crypto transactions from scrutiny.

Authorities view stablecoins as tools that can move value rapidly and quietly across borders, making them relevant to anti-money-laundering efforts regardless of headline volume. The concern is not that crypto rivals the FX market, but that stablecoins may serve as side channels for funds that would otherwise pass through monitored banking routes.

This perspective explains why stablecoins are being reviewed alongside physical cash and gold, both long-standing vehicles for unrecorded value transfers. From the central bank’s point of view, the medium matters less than the behavior it enables.

How Do Capital Controls Shape Thailand’s Approach?

Thailand has maintained capital controls for decades, regulating how residents and non-residents move money across borders. While crypto ownership is legal, trading activity that involves foreigners or bypasses reporting requirements raises concerns under existing financial laws.

The latest scrutiny follows a Jan. 9 directive from Prime Minister Anutin Charnvirakul calling for tighter oversight of gold trading and digital assets. The directive included stricter reporting obligations and enforcement of wallet identification rules, with multiple agencies involved, including the central bank and the Revenue Department.

By linking stablecoin activity to this broader enforcement push, authorities are signaling that digital assets will be treated as part of the financial system rather than a separate niche. Wallet activity, counterparty identity, and transaction patterns are becoming just as relevant as volumes.

Investor Takeaway

What’s Happening Globally With Stablecoins?

Thailand’s review comes as stablecoins continue to grow worldwide. Total stablecoin supply now exceeds $292 billion, with USDT accounting for the majority of circulating tokens. As usage expands, regulators in multiple regions are paying closer attention to how stablecoins intersect with financial crime and sanctions enforcement.

Data from Chainalysis shows that stablecoins accounted for a large share of volume in 2025, even as overall illegal activity declined. That visibility has pushed both regulators and issuers to tighten controls.

Tether, the issuer of USDT, has said it has stepped up enforcement. The company adopted a wallet-freezing policy in late 2023 aligned with U.S. sanctions lists and says it has blocked more than $3 billion in USDT to assist law enforcement. In January, it froze over $182 million linked to several blockchain addresses.

Despite these actions, USDT continues to draw attention for its role in economies facing sanctions or capital restrictions. A recent have become deeply embedded in Venezuela’s oil trade, with a large share of revenues collected in tokens rather than traditional currencies.

What Comes Next for Thailand’s Crypto Market?

For now, the has not announced new bans or restrictions on stablecoins. The focus remains on monitoring, reporting, and enforcement against activity that falls outside existing rules. platforms and wallet providers may face pressure to strengthen checks on foreign users and transaction patterns.

The broader message is that stablecoins are no longer viewed as a fringe product. Even in markets where crypto volumes are relatively small, authorities view enough risk to warrant close oversight. Thailand’s approach suggests that future regulation will focus less on whether crypto is used, and more on who uses it, how, and for what purpose.