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The Bank of Thailand (BOT) announced on January 13 a new set of regulatory measures aimed at addressing structural economic challenges and stabilizing the Thai baht, including enhanced monitoring of the stablecoin USDT (Tether).
🇹🇭 UPDATE: Thailand steps up oversight as the central bank flags foreign-linked stablecoin activity under its “gray money” monitoring. pic.twitter.com/LqwZhw5uoA
— Cointelegraph (@Cointelegraph) January 13, 2026
The move signals a shift from passive observation to active intervention, as authorities seek to curb unregulated capital flows and prevent financial crime from undermining currency stability.
Increased Scrutiny of USDT and Gray Money
Speaking at a public seminar, BOT Governor Sethaput Suthiwartnarueput emphasized that unresolved structural issues could threaten Thailand’s long-term macroeconomic stability. He noted that the central bank is expanding its focus beyond traditional indicators to tackle deeper, systemic risks.
A key concern is the flow of so-called “gray money” through previously under-regulated markets. In particular, the central bank found that around 40% of USDT sellers on domestic trading platforms were foreign nationals, despite regulations that prohibit such activity.
As a result, the BOT has decided to formally incorporate USDT into its liquidity monitoring framework, marking one of the most direct interventions targeting stablecoin activity in Thailand to date.
While daily cryptocurrency trading volume in Thailand stands at approximately $78 million, far smaller than the $280–420 million traded daily in the foreign exchange market, officials warned that digital assets could still become conduits for illicit financial activity.
The governor described the growing influence of these flows on the baht as a “genuine structural problem”, underscoring the need for tighter oversight.
Gold Trading Identified as Major Driver of Baht Volatility
The regulatory expansion is also driven by Thailand’s unique economic structure, particularly its outsized gold market.
According to the BOT, gold trading accounts for roughly 50–60% of Thailand’s GDP, making it a significant source of currency volatility. On days when the baht strengthens, 45–62% of domestic U.S. dollar selling is attributed to gold traders, the governor said.
Unregulated gold transactions have amplified exchange-rate swings, prompting authorities to step in. The central bank acknowledged that interest rate adjustments alone are insufficient to resolve these structural challenges.
Thailand’s economic growth has slowed markedly, falling from a historical average of 5% to around 2%, with 2026 growth projected at just 1.5–1.7%. This slowdown has reinforced the need for a broader regulatory response.
Some experts suggest that, amid rising oversight and currency volatility, long-term crypto holdings may increasingly be considered as part of asset-protection strategies though regulatory awareness remains essential.
Comprehensive Regulatory Framework Rolled Out
The new measures are based on a government directive issued on January 9, which significantly tightens reporting and know-your-customer (KYC) requirements for cryptocurrencies and gold trading.
Key provisions include:
- Mandatory reporting by commercial banks of suspicious transactions to the central bank
- Disclosure of fund sources for foreign currency inflows exceeding $200,000
- Monitoring of cash exchanges involving more than $27,000 in small-denomination banknotes
- Application of the crypto Travel Rule to track cross-border transactions
Authorities have also established a centralized data bureau to aggregate and analyze information from banks, crypto service providers, and gold dealers, enabling real-time detection of suspicious activity.
Anti-money-laundering standards have been tightened in both digital and physical gold markets, with lower reporting thresholds now in effect.
The BOT expects the new oversight measures covering digital gold trading and USDT to be fully implemented by late January, marking a significant escalation in Thailand’s financial surveillance regime.
