Thailand is escalating its fight against illegal financial activity, rolling out a broad regulatory offensive targeting cryptocurrencies and gold trading in an effort to dismantle so-called “grey money” networks operating across the economy.
Government Moves to Seal Financial Loopholes
Over the weekend, Prime Minister Anutin Charnvirakul and Finance Minister Ekniti Nitithanprapas convened a high-level meeting of the “Connect the Dots” sub-committee, outlining a strategy to integrate national financial data and eliminate structural weaknesses exploited by criminal groups.
At the center of the plan is the creation of a national Data Bureau, designed to enable real-time monitoring of suspicious transactions and generate detailed risk profiles across multiple financial sectors. Authorities say this integrated system will significantly improve their ability to trace illicit flows across both traditional and digital channels.
Gold Trading Faces Immediate Scrutiny
The Prime Minister’s directive places gold trading directly in the crosshairs. Thailand’s Anti-Money Laundering Office (AMLO) has been instructed to lower the reporting threshold for gold bar purchases, tightening oversight on a sector long used to move large sums discreetly.
Previously, only gold transactions above 2 million baht required reporting. The new limit will be substantially lower, specifically to counter “smurfing”, a tactic where large transactions are split into smaller amounts to evade detection. Officials believe the gold market has become a critical channel for laundering illicit funds.
Crypto Providers Ordered to Enforce the Travel Rule
The crackdown also extends to crypto. Thailand’s Securities and Exchange Commission (SEC) has ordered strict enforcement of the Travel Rule, an international compliance standard requiring crypto service providers to identify both senders and recipients of wallet-to-wallet transfers.
Protecting the Baht From Gold-Driven Distortions
Beyond crime prevention, Thailand’s operation also aims to rein in gold speculation, which officials say has contributed to abnormal strength in the Thai baht. Large-scale gold trades conducted in local currency have distorted foreign exchange flows, creating risks for exports and tourism.
The baht is currently hovering near its strongest level since 2021. Vitai Ratanakorn, governor of the Bank of Thailand, confirmed plans to cap foreign-currency transactions at 800,000 baht per day for individuals using money changers.
Market Adjustments and Record Trading Volumes
To ease pressure on the currency, major bullion dealers-who control roughly 90% of Thailand’s gold market-have proposed upgrading their trading platforms to allow dollar-denominated transactions within the next three to six months.
Gold trading activity has reached unprecedented levels. Last year, the baht gained 8%, making it the second-best performing currency in Asia, aided by a 65% rally in gold prices. At peak periods, gold-related transactions accounted for 50%-60% of Thailand’s total dollar trading, sometimes exceeding volumes on the local stock exchange.
According to Kritcharat Hirunyasiri of MTS Gold Group, total gold trading reached 10 trillion baht last year, doubling from 2024. Data from the Thai Gold Traders Association shows Thailand imported 180 tons of gold while exporting 110 tons, underscoring the scale of capital flows now under scrutiny.
