The Bank of Thailand is implementing new compliance checks on stablecoin transactions and gold bullion purchases to combat the country's shadow economy. Governor Vitai Ratanakorn declared that the bank established a system to flag USDT transactions and scrutinize large cash withdrawals, with measures requiring customers withdrawing over $150,000 to explain their cash needs since April. The initiative aims to curb illicit activity through the financial system and close loopholes used to evade compliance measures. Thailand's shadow economy is believed to account for a large portion of the country's Gross Domestic Product, prompting authorities to deploy multiple parallel strategies to address irregular money flows through established financial channels.
SEC Establishes USDT Transaction Flagging System
Through the national Securities and Exchange Commission (SEC), the Bank of Thailand established a system to flag transactions using USDT, a dollar-pegged stablecoin. The bank initially found that some large transactions with abnormally large volumes might be avoiding regular channels to sidestep compliance measures. The monitoring framework specifically targets high-volume stablecoin trades that exhibit irregular patterns inconsistent with standard financial activity.
Bank of Thailand Reduces Large Cash Withdrawals by 35%
The bank has been scrutinizing large cash deposits since April, forcing customers who withdraw over $150,000 to explain why they need cash instead of using electronic money. Ratanakorn explained that these measures had reduced these withdrawals by 35%. Source-of-funds statements will be required for equally large deposits in the future. The cash withdrawal restrictions aim to boost the national electronic economy by encouraging digital payment methods over physical currency transactions.
Gold Withdrawal Volumes Drop from 4,000 kg to 700 kg Monthly
Gold bullion is a target of the action, with similar measures that seek to close loopholes, including the withdrawal of unusually large amounts of gold flagged as abnormal by the national anti-money laundering office. These measures have reduced gold withdrawal volumes from 4,000 kg to 700 kg per month, easing the strengthening of the value of the Thai baht. Authorities identified abnormal gold bullion buying patterns as potential channels for moving funds outside the regulated financial system.
Finance Ministry Establishes Data Bureau in November
These measures follow the establishment of a data bureau to investigate irregular money flows in November. Finance Minister Ekniti Nitithanprapas, who leads the office, mentioned crypto platforms and currency exchanges as gateways for illicit flows entering the country. Ratanakorn stressed that "the measures we are implementing are not short-term fixes; they require the continuous deployment of multiple parallel strategies."
FAQ
What measures did the Bank of Thailand implement against USDT transactions?
The Bank of Thailand established a system through the Securities and Exchange Commission to flag USDT transactions with abnormally large volumes that might be avoiding regular channels to sidestep compliance measures.
How much did Thailand reduce large cash withdrawals?
Thailand reduced large cash withdrawals by 35% after implementing measures in April requiring customers who withdraw over $150,000 to explain why they need cash instead of using electronic money.
What happened to gold withdrawal volumes in Thailand?
Gold withdrawal volumes dropped from 4,000 kg to 700 kg per month after authorities flagged unusually large gold bullion purchases as abnormal through the national anti-money laundering office.
