Thailand audits high-volume USDT trades to curb illicit flows

The Bank of Thailand and the Securities and Exchange Commission have opened audits of high-volume stablecoin trades, focusing on Tether's USDT. The agencies have begun analyzing trading and transfer data with analytics to identify abnormal patterns.

Preliminary reviews have flagged several transactions that appear structured to avoid disclosure requirements or to bypass standard fund-transfer channels, Governor Vitai Ratanakorn announced.

Governor Vitai Ratanakorn described the measures as ‘not short-term fixes but require multiple ongoing, complementary actions.'

The Bank of Thailand and the SEC are coordinating on regulatory and enforcement follow-up. Possible actions include penalties, account freezes or criminal referrals depending on audit findings.

Officials noted the audits form part of wider efforts to limit the shadow economy and money laundering. Regulators have also tightened controls on large cash deposits and withdrawals, increased oversight of gold trading and monitored accounts linked to online gambling.

Police investigators described a crypto-laundering case in which proceeds from romance scams were moved through multiple cryptocurrencies and cross-chain token swaps to obscure origin. One suspect's digital wallet processed more than $122.5 million over ten months.

Analytic tools are being used to flag irregular trading volumes, repeated small transfers structured to avoid reporting thresholds, unusual routing across chains and exchanges, and rapid conversions that can obscure a money trail. The audits focus on USDT because it is widely used for trading and settlement on many exchanges and bridges.

Teams from financial regulators and police are mapping flows between digital wallets, exchanges and bank accounts to locate points where illicit proceeds can re-enter the formal financial system.

The Bank of Thailand and the SEC have not announced specific enforcement actions tied to the stablecoin reviews; further steps will be determined after the audits and interagency decisions.