Overview
- The Bank of Thailand announced on July 11 that it and the Securities and Exchange Commission have opened joint audits of large USDT (Tether) transactions to spot transfers that may hide who controls the funds.
- The central bank plans to require customers who deposit 5 million baht or more in cash to verify the source of funds, with rules scheduled to begin in Q4 2026.
- Preliminary analytics have already flagged transfers that appear structured to avoid disclosure or bypass domestic remittance channels, and findings have been referred to the SEC for possible disciplinary action.
- Earlier measures that forced explanations for cash withdrawals of 5 million baht led to a roughly 35% drop in large withdrawals and an 82% fall in monthly physical gold outflows, showing the campaign can change behavior.
- Regulators say this is part of a long-term campaign that pairs enforcement with incentives for licensed markets—USDT and USDC remain allowed on licensed exchanges since March 2025—but banks, exchanges, and traders face higher compliance checks that could tighten liquidity, especially given that about 40% of USDT sellers on local platforms were foreign nationals.