Thailand Implements Strict Checks on High-Volume Stablecoin Trades
New measures aim to combat illicit financial flows.
1Thailand's Fight Against the Shadow Economy
The Bank of Thailand has introduced new measures to control the country's shadow economy, which accounts for a significant portion of its GDP. Strict oversight is being applied to stablecoin transactions and gold purchases.
2Focus on USDT Transactions
The bank's new system monitors transactions involving the dollar-pegged stablecoin USDT. Large-volume transactions were found to bypass regular channels to evade compliance measures, marking a crucial step in curbing illicit flows.
3Restrictions on Large Cash Withdrawals
Since April, source-of-funds declarations have been required for cash withdrawals exceeding $150,000. This measure has reduced large cash withdrawals by 35%, accelerating the shift to electronic payments.
4Scrutiny on Gold Purchases
Similar measures have been applied to gold bullion purchases. Unusually large gold withdrawals flagged by the anti-money laundering office have reduced monthly volumes from 4,000 kg to 700 kg.
5Long-Term Strategies
Bank of Thailand Governor Vitai Ratanakorn emphasized that these measures are not short-term fixes. Combating the shadow economy requires the continuous implementation of multiple parallel strategies.
6Ongoing Battle Against the Shadow Economy
Thailand's shadow economy is considered one of the largest globally. The new measures support the work of a data bureau established to investigate irregular money flows, aiming to enhance the security of the financial system.