Thailand is stepping up scrutiny of stablecoin transactions, with the Bank of Thailand placing Tether’s USDT under tighter surveillance amid growing concerns over foreign-linked crypto activity and unregulated capital flows.
Key Takeaways
- Bank of Thailand says 40% of USDT sellers on local platforms are foreigners who should not be trading domestically.
- Stablecoins like USDT are now monitored alongside cash, gold, and e-wallet activity as part of a wider crackdown on grey money.
- New controls follow a January 9 directive from the Prime Minister targeting unregulated fund movements across financial sectors.
- Tether has frozen over $3 billion in USDT globally to support law enforcement, but concerns over misuse continue to grow.
What Happened?
The Bank of Thailand is bringing USDT under a financial monitoring framework amid fears that stablecoins are being used to move unregulated funds across borders. The central bank said it is especially concerned about the number of foreign actors involved in USDT trading on Thai platforms, with Governor Vitai Ratanakorn stating that about 40% of sellers are non-residents.
Bank of Thailand monitors USDT ‘grey money’ trades: report https://t.co/SyjhzcmCuq
— The Block (@TheBlock__) January 13, 2026
Thailand Puts USDT in the Crosshairs
The Bank of Thailand is expanding its financial oversight, specifically targeting stablecoins like Tether’s USDT due to their rising role in untraceable or loosely regulated transactions. Officials say this move is part of a broader strategy to block “grey money” from entering the financial system.
- Governor Vitai explained that the monitoring effort aligns stablecoin trades with other scrutinized channels such as cash exchanges, gold trades, and e-wallet flows.
- Although the domestic crypto market is relatively small, averaging 2.8 billion baht in daily trading volume, its potential for misuse has pushed regulators to act.
- By contrast, Thailand’s traditional foreign exchange market moves about 10 to 15 billion baht daily, showing that crypto is still a fraction of the broader economy, yet not insignificant in risk.
A Government-Led Crackdown
The stablecoin oversight effort follows a January 9 directive from Prime Minister Anutin Charnvirakul, calling for coordinated action between agencies including the Bank of Thailand and the Revenue Department. The aim is to identify and stop large or suspicious financial flows that might contribute to currency instability or financial crime.
- Banks and trading platforms must now report suspicious activity and large transactions more rigorously.
- Authorities are enforcing wallet identification requirements and working to close gaps in crypto-related regulations.
Vitai said the bank is moving beyond mere observation:
Tether’s Global Enforcement Push
Tether, the issuer of USDT, has taken a more active stance in recent years to limit the coin’s use in illicit activity.
- The company adopted a proactive wallet-freezing policy in December 2023 to comply with US sanctions and global enforcement actions.
- Tether claims it has frozen more than $3 billion in USDT so far and cooperated with over 310 law enforcement agencies across 62 jurisdictions.
- Most recently, it blocked over $182 million linked to five Tron addresses on January 11, part of its commitment to halting illegal fund flows.
Despite these steps, concerns persist. According to Chainalysis, 84% of illicit cryptocurrency transaction volume in 2025 involved stablecoins, with total suspicious activity estimated at $154 billion.
CoinLaw’s Takeaway
I think Thailand’s focus on stablecoins is long overdue. In my experience, regulatory delays around crypto often create a wide gap that bad actors are quick to exploit. While Tether claims to support law enforcement, the massive volume of shady transactions tied to stablecoins shows there’s a bigger problem. Thailand is smart to step in now before it becomes a systemic risk. This move shows that stablecoins are no longer outside the reach of traditional financial oversight, and that could reshape crypto compliance in the region.
