The Bank of Thailand (BOT) has announced that it will audit high-volume stablecoin transactions as it moves to curb the use of digital assets in illicit finance.

 

According to Witai Rattanaporn, Governor of the Bank of Thailand, the move is aimed at addressing the country’s structural problems, while the apex bank also seeks to reduce the grey economy's role in contributing to these issues.

 

The grey economy, which refers to economic activities outside the fully legal and regulated system, is not always completely illegal. However, its lack of government oversight makes it a potential avenue for facilitating illicit activities, which the BOT aims to prevent. Rattanaporn said he does not want financial institutions to continue serving as channels that enable the grey economy.

 

Rattanaporn stated that the Bank of Thailand had begun implementing measures to control cash withdrawals since April. For cash withdrawals of 5 million baht or more, banks must verify the necessity of the customer’s request, including why the customer chose cash withdrawals over bank transfers or cheques. Withdrawals will be permitted if the funds are deemed to be for legitimate purposes.

 

Since the introduction of the new rule, cash withdrawals have declined by approximately 35%, Rattanaporn said. In the coming quarter, Rattanaporn noted that customers depositing 5 million baht or more may be required to explain the source of the funds.

 

Regarding the use of digital assets to evade scrutiny, Rattanaporn said the Bank of Thailand is currently working with the country’s Securities and Exchange Commission (SEC) to use data analytics to monitor stablecoin transactions and investigate unusually high transaction volumes.

 

Cryptocurrency Use in Thailand 

Although cryptocurrency trading in Thailand is generally permitted on licensed exchanges, the country maintains strict rules on the use of digital assets. For example, cryptocurrencies and stablecoins cannot be used as valid payment instruments. Digital asset firms are also prohibited from facilitating payments in cryptocurrencies.

 

Thailand remains one of the leading crypto markets in Southeast Asia. According to a report citing data from the Securities and Exchange Commission (SEC), more than 7 million digital asset accounts are currently registered, representing approximately 12% to 18% of the country’s population. The report also noted that the Bank of Thailand is expected to introduce a baht-backed stablecoin before the end of this year.