Thailand flags USDT transfers, tightens checks on large cash and gold

The Bank of Thailand and the Securities and Exchange Commission have set up systems to flag high-volume USDT stablecoin transfers and to require customers to explain cash withdrawals over $150,000. The measures began in April as part of an effort to identify and block suspected illicit flows into and through Thailand.

The central bank said the system initially identified unusually large stablecoin transfers that appear to bypass regular channels. Since April, the bank has increased scrutiny of large cash deposits and withdrawals and has asked customers who take out more than $150,000 in cash to justify why they need physical currency instead of using electronic payments. The bank reported a 35% decline in withdrawals above that threshold after the checks began.

Authorities have applied similar controls to gold bullion. The national anti-money laundering office flags abnormally large gold withdrawals. Reported monthly gold withdrawals fell from about 4,000 kilograms before the checks to roughly 700 kilograms after the measures were introduced. Officials say the reduced movement of physical gold has cut a flow of value that was linked to strengthening pressure on the Thai baht.

A data bureau established in November is tracking irregular money flows. Finance Minister Ekniti Nitithanprapas identified crypto trading platforms and currency exchanges as potential gateways for illicit funds. Governor Vitai Ratanakorn warned, “the measures we are implementing are not short-term fixes; they require the continuous deployment of multiple parallel strategies.”

The central bank plans to require source-of-funds statements for large deposits of comparable size as a next step. Bank officials report that the new checks have already reduced volumes of flagged transactions and that regulators are refining systems used to detect suspect stablecoin activity and other unusual transfers. The measures are being applied within Thailand’s formal financial system; estimates place the country’s shadow economy at nearly 41% of GDP in 2015.