Increased Regulatory Scrutiny on Stablecoin Activity
Thailand's financial authorities have increased oversight of USDT trading after identifying strong foreign participation on local platforms. The Bank of Thailand linked a large share of activity to non-resident users. Regulators now classify stablecoin flows alongside other monitored money channels. The policy forms part of a broader effort targeting grey money risks.
The Bank of Thailand reviewed transaction data from domestic crypto platforms. The review showed that about 40% of active USDT sellers were foreign users. Authorities determined that such activity conflicts with domestic trading rules. As a result, regulators placed USDT transactions under closer review.
Officials applied the same monitoring standards used for cash movements and gold trading. They also aligned stablecoin checks with digital wallet transfer rules. Regulators stressed that crypto volumes remain relatively small. However, they stated that transaction speed and opacity still pose risks.
Daily crypto trading in Thailand averages about 2.8 billion baht. Meanwhile, daily foreign exchange trading reaches roughly 10 to 15 billion baht. Authorities said market size alone does not remove exposure. Digital assets can still support untracked fund flows.
Government Directive Expands Enforcement Scope for Financial Transactions
The policy followed a January 9 government directive covering gold trading and digital assets. The order required stronger reporting standards across these sectors. Trading platforms must now apply stricter wallet identity checks. Authorities also expanded requirements for transaction disclosures.
Several agencies now share enforcement responsibility. The central bank, the Revenue Department, and other offices exchange transaction data. This structure helps identify large or unusual fund movements. It also improves visibility across payment systems operating in Thailand.
Officials aim to address gaps caused by fragmented oversight. Shared data allows faster detection of irregular activity. It also supports consistent enforcement across financial channels. Regulators view coordination as critical for monitoring cross-border flows.
Global Stablecoin Risks Influence Local Policy Decisions
International trends influenced Thailand’s approach. Stablecoins dominate global crypto liquidity. USDT remains the largest stablecoin by supply. It holds more than $187 billion, representing about 64 percent of the market. USDC follows with close to $75 billion in circulation.
Growth has increased scrutiny due to misuse risks. Blockchain analytics firms report that stablecoins accounted for 84% of illegal crypto transactions last year. Estimated illicit volume reached $154 billion. These figures prompted regulators worldwide to tighten oversight.
Tether has taken enforcement actions in response. The company implemented wallet freezing rules tied to sanctions lists. It has frozen more than $3 billion in USDT globally. It has also blocked over $182 million linked to suspicious Tron blockchain addresses.