The financial regulators of Thailand are increasing their efforts to stop illegal capital flows. In this respect, the Bank of Thailand (BOT) disclosed that users depositing 5 million baht (nearly $150,000) or an amount above it will need formal verification of the funding source. As per the Bank of Thailand’s official statement, it is also working in collaboration with the Securities and Exchange Commission (SEC) for the audit of high-value stablecoin transfers. Specifically, the bank is focusing on the top stablecoin, Tether ($USDT).

Bank of Thailand Imposes Stricter Regulations for Transfers through $USDT and Cash

The new regulations of the Bank of Thailand on transactions via Tether ($USDT) and cash are stricter. Specifically, those depositing $150,000 or more in cash in baht will have to validate the funding source. This extends earlier restrictions imposed on big withdrawals. The crackdown highlights the country’s determination to put an end to the loopholes existing in both digital and traditional financial networks.

While discussing this development, Vitai Ratanakorn, the Governor of the BOT, confirmed that this initiative will go live in the current year’s 4th quarter. The move reportedly targets the “grey economy,” with measures broadening obligations in the case of commercial banks, taking into account big currency exchanges, suspicious stablecoin operations, cash ecosystems, and bullion trading.

In particular, the deposit restrictions on withdrawal rules of April required people withdrawing 5M baht or even more to validate the reason for use of cheques or electronic transactions. The respective policy resulted in a thirty-five percent drop in big cash withdrawals across the jurisdictions. The latest deposit-side requirements attempt to complete the circuit, guaranteeing scrutiny of both outflows and inflows of big amounts.

Crackdown against Bullion and Stablecoin Trading Fortifies Oversight and Financial Integrity

According to the Bank of Thailand, it has also imposed more stringent controls when it comes to bullion trading, the sector often experiencing exploits, specifically for money laundering. Now banks must report any suspicious patterns, like swift digital buyouts, leading to same-day physical withdrawals. Overall, with improved Know-Your-Customer (KYC) checks to remove mule accounts associated with online gambling, the new measures underscore a coordinated effort to secure the financial integrity of Thailand against threats.