Thailand's central bank will require customers depositing 5 million baht or more in cash to explain and document the source of funds, with rules expected to begin in the fourth quarter of 2026. According to reports from The Nation, this extension of existing withdrawal controls aims to close the gap between cash entering and leaving accounts. The Bank of Thailand has already seen 35% reduction in high-value cash withdrawals following the introduction of similar controls for withdrawals in April. Governor Vitai Ratanakorn emphasized that the measures are not short-term fixes, requiring multiple parallel strategies for effective implementation.
The Bank of Thailand is collaborating with Thailand's Securities and Exchange Commission to examine large USDT transactions for hidden ownership and bypassed domestic remittance channels. As reported by The Nation, officials found transaction patterns that may conceal beneficial owners or avoid domestic remittance channels. The review focuses on tracing fund control and compliance with local regulations. Bank of Thailand Governor Vitai Ratanakorn revealed in January that roughly 40% of USDT sellers on local platforms were foreigners, arguing they should not be operating in Thailand. The BOT is now working with the SEC to review unusually high-volume USDT trading, with authorities identifying transactions that may indicate disclosure avoidance or movement of funds outside standard financial channels.
The regulatory campaign extends beyond cryptocurrency to cover bullion, banknotes, payment gateways, and mule accounts. The Bank of Thailand is reviewing the legal framework before issuing deposit requirements for high-value banknote exchanges, such as bringing in large quantities of 1,000-baht notes to exchange for 100- or 500-baht notes, which may require explanation of transaction reasons. Monthly physical gold withdrawals have decreased from approximately 4,000 kilograms to roughly 700 kilograms following tighter oversight. Officials are also studying large banknote exchanges and accounts linked to online gambling, with the stablecoin review adding blockchain records to existing transaction monitoring efforts.
The Bank of Thailand and SEC are implementing coordinated measures to address hidden capital flows and illicit financial activities. The authorities are also supervising TouristDigiPay, a program allowing eligible foreign visitors to convert crypto into baht before paying through the PromptPay QR network. The joint audits, which kicked off in Q3 2026, have already referred findings for potential disciplinary actions to the SEC. Governor Vitai emphasized that the measures require continuous deployment of multiple parallel strategies, with the coming quarter testing how far the BOT can extend its reach. The practical impact on Thai markets could be significant, with increased scrutiny likely to thin trading volumes and face traders with more paperwork and slower execution.
Thailand's regulatory crackdown represents the country's most aggressive crypto enforcement to date, driven by $3.4 billion in scam losses recorded in 2025 alone. Current data shows that Thai platforms have frozen over 10,000 accounts suspected of money laundering, following a larger 2025 crackdown that affected 3 million accounts. Bitkub, Thailand's largest crypto exchange, handles about $26 million in daily volume, with nearly 40% in forex, particularly the USDT/THB pair. While crypto trading remains legal in Thailand, using digital assets or stablecoins for payments is banned, with the BOT approving USDT and USDC for transactions while maintaining payment prohibitions. The compliance burden is expected to impact every exchange, bank, and gold shop in the country, with Tether cooperating by freezing USDT and potentially leading to blacklistings based on BOT audit findings.
