Thailand Turns Its Attention to Stablecoins as USDT Trading Raises Grey Money Concerns

Thailand’s central bank is tightening its focus on stablecoin activity, signaling a broader shift in how authorities view the role of digital dollars in cross-border financial flows. According to local reporting, the Bank of Thailand has begun actively monitoring trades involving Tether’s USDT after identifying what it described as significant “grey money” risks tied to foreign-linked activity on domestic crypto platforms.

Governor Vitai Ratanakorn said that roughly 40 percent of USDT sellers operating on Thai exchanges are foreigners who “should not be trading” in the country, placing stablecoin transactions alongside cash movements, gold trading, and e-wallet flows under enhanced scrutiny. While Thailand’s crypto market remains relatively small in absolute terms, officials appear increasingly concerned about how stablecoins can be used to move value outside traditional oversight frameworks.

Daily trading volumes in Thailand’s crypto market average around 2.8 billion baht, far below the 10 to 15 billion baht typically seen in the country’s foreign exchange market. Yet central bank officials have emphasized that size alone does not determine risk. Stablecoins, they argue, can function as efficient conduits for unreported or lightly monitored capital flows, particularly when tied to offshore participants.

“We will no longer limit ourselves to just analysis,” Vitai said, according to 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 statement reflects a more assertive posture from the central bank, framing stablecoin oversight as a matter of long-term financial stability rather than niche market supervision.

The move follows a January 9 directive from Prime Minister Anutin Charnvirakul ordering tighter controls across gold trading and digital assets. The initiative includes stricter reporting standards and stronger enforcement of wallet identification rules, and is being coordinated across multiple agencies, including the central bank and the Revenue Department. Together, the measures aim to improve visibility into large or unusual financial movements that may fall outside conventional banking channels.

Thailand’s action comes at a time when stablecoins are expanding rapidly on a global scale. Total stablecoin supply now exceeds $290 billion, with USDT alone accounting for roughly two-thirds of the market. That growth has coincided with increasing regulatory unease, particularly as stablecoins become embedded in informal economies, remittances, and, in some cases, sanctioned or high-risk jurisdictions.

Data from blockchain analytics firms has added to those concerns. Stablecoins reportedly accounted for the majority of illicit cryptocurrency transaction volume in 2025, underscoring how dollar-pegged tokens can be both efficient payment tools and attractive vehicles for financial misconduct. While illicit crypto volumes have fluctuated, regulators increasingly view stablecoins as a focal point for enforcement.

Tether has sought to position itself as a cooperative actor amid this scrutiny. The company has said it adopted a proactive wallet-freezing policy in late 2023 aligned with U.S. sanctions lists and has blocked billions of dollars in USDT at the request of law enforcement agencies worldwide. Earlier this month, it froze more than $180 million linked to Tron-based addresses flagged for suspicious activity.

Despite these efforts, USDT remains controversial, particularly in emerging and sanctioned economies where it has become deeply embedded in everyday commerce. For Thai authorities, the concern is less about the technology itself and more about control. As stablecoins blur the lines between domestic and cross-border finance, the Bank of Thailand’s response suggests regulators are no longer willing to treat them as peripheral to the monetary system.