Combating Illicit Flows: Thailand Implements Strict New Checks on High-Volume Stablecoin Trades
The Bank of Thailand is intensifying efforts to combat the country’s shadow economy by implementing strict new checks on high-volume stablecoin transactions and gold bullion purchases. Governor Vitai Ratanakorn announced that the central bank, in coordination with the Securities and Exchange Commission (SEC), has established a system to flag transactions using USDT, a dollar-pegged stablecoin. Initial findings revealed that some large transactions with abnormally high volumes may be bypassing regular channels to evade compliance measures.
This move is part of a broader strategy to reduce illicit financial flows. Thailand’s shadow economy was estimated to account for nearly 41% of GDP by 2015, making it one of the largest in the world. The bank has already applied similar measures to large cash transactions and gold bullion movements, with significant results. Since April, customers withdrawing over $150,000 in cash must explain why they need physical currency instead of electronic money, leading to a 35% reduction in such withdrawals. Source-of-funds statements will also be required for equally large deposits in the future.
Gold bullion transactions have also been targeted. The national anti-money laundering office now flags unusually large gold withdrawals as abnormal, reducing monthly volumes from 4,000 kg to 700 kg. This has helped strengthen the Thai baht. Ratanakorn emphasized that these measures are not short-term fixes but require continuous deployment of multiple parallel strategies.
These actions follow the establishment of a data bureau in November to investigate irregular money flows. Finance Minister Ekniti Nitithanprapas, who leads the office, previously noted that crypto platforms and currency exchanges serve as gateways for illicit flows entering the country. The Bank of Thailand’s latest move underscores its commitment to tightening oversight of stablecoins and other financial instruments used in the gray economy.