Bank of Thailand monitors USDT ‘grey money’ trades: report

The Bank of Thailand is bringing USDT under its monitoring framework as part of a broader campaign against so-called grey money, after identifying a large share of stablecoin activity on local platforms as foreign-linked, according to a Tuesday report by local outlet The Nation.

Governor Vitai Ratanakorn said that roughly 40% of USDT sellers operating on Thai platforms are foreigners who “should not be trading” in the country, placing stablecoins alongside cash movements, gold trading, and e-wallet flows under closer review, the outlet reported.

The scrutiny comes despite the relatively small size of the domestic crypto market. Per the report, daily trading volumes average about 2.8 billion baht, compared with 10 billion to 15 billion baht in Thailand’s foreign exchange market. Bank of Thailand officials said the gap has not excluded crypto transactions from review, citing their potential use as channels for grey money.

“We will no longer limit ourselves to just analysis,” Vitai said in the report. “We will extend our hand to lead in solving structural problems. If these issues are not addressed, they will eventually impact macroeconomic stability in the long term.”

The central bank’s move follows a Jan. 9 directive from Prime Minister Anutin Charnvirakul ordering tighter controls across gold trading and digital assets, including stricter reporting requirements and enforcement of wallet identification rules. The measures are part of a coordinated effort involving the central bank, the Revenue Department, and other agencies to track large or unusual financial flows.

Stablecoins grow as authorities tighten scrutiny

The increased regulatory attention in Thailand coincides with the stablecoin sector’s continued expansion in scale and usage globally.

The total stablecoin supply exceeds $292 billion, according to The Block’s data dashboard. Tether’s USDT accounts for over $187 billion of that total, or roughly 64%, while Circle’s USDC represents nearly $75 billion, making the two issuers responsible for the vast majority of circulating supply.

This growth has been accompanied by increased use of stablecoins in illicit transaction volumes. According to recent data from Chainalysis, stablecoins accounted for 84% of all illicit cryptocurrency transaction volume in 2025, which reached a total lower-bound estimate of $154 billion.

Tether, the issuer of USDT, has said it has taken enforcement action against illicit use. The company formally adopted a “proactive” wallet-freezing policy in December 2023 to align with the U.S. Treasury’s Office of Foreign Assets Control Specially Designated Nationals list.

To date, Tether has blocked more than $3 billion worth of USDT to assist law enforcement globally, working with over 310 agencies across 62 jurisdictions, according to its website. On Jan. 11, Tether froze more than $182 million in USDT linked to five Tron addresses.

Despite these enforcement actions, USDT remains mired in controversy regarding its global use. A Jan. 10 Wall Street Journal report detailed Tether’s central role in Venezuela’s economy, where it served as a tool for the state-run oil company to sidestep U.S. sanctions. By one estimate cited in the report, almost 80% of Venezuela’s oil revenue is collected in stablecoins like USDT.