Multiple platforms have warned that Thailand's crackdown on online gold trading could dim a rare bright spot for investors, while the Bank of Thailand is considering further restrictions.
As global gold prices rose through 2025, the Thai baht climbed to a five-year high, troubling the export- and tourism-dependent economy. The central bank has attributed this to online gold speculators, whose rapid trades worth millions of dollars per transaction have amplified the baht's volatility—with swings as high as 30% on some days.
To curb the runaway exchange rate, the Bank of Thailand began imposing a daily online trading limit of 50 million baht (approximately $1.6 million) per person in early March, aiming to push top investors toward dollar-based transactions. The central bank also retains the option to further reduce the daily limit by 40% to 30 million baht.
"We built an ecosystem where ordinary investors could participate in gold trading—a system envied worldwide, but instead of nurturing it, they are trying to dismantle it," said Pawan Nawawattanasub, CEO of YLG Bullion International, one of Thailand's largest gold trading firms.
Pawan insists that for significant impact, the entire digital gold trading system needs to shift to dollar-based platforms, transferring the burden of currency conversion onto investors.
In Thailand, gold is woven into daily life: it adorns Buddhist temples, gleams in shop windows along the narrow alleys of Bangkok's Chinatown; farmers store it in safes under their counters; families gift it to newborns and newlyweds. Thailand's per capita gold purchases even exceed those of the world's two most populous nations, China and India.
This preference for the safe-haven asset has seamlessly moved online, with all 14 major gold trading firms offering at least one trading app. The digital market provides extraordinary, direct access to global assets without time restrictions. Thais can buy and sell any fraction of gold in their local currency, free from the frictions of foreign markets.
The link between gold trading and the baht is partly mechanical. Gold is priced in dollars and tends to rise when the dollar weakens. When Thai traders sell, dollar proceeds are converted back into baht, boosting demand for the local currency. Large investors can concentrate their closing positions, converting dollars to baht and magnifying gains, especially in less liquid overnight markets.
The baht surged nearly 8% last year, a move the government says is inconsistent with weak economic fundamentals, including modest GDP growth, sluggish consumption, and underperforming stock markets.
In a March interview, Bank of Thailand Deputy Governor Piti Disyatat said the central bank has been discussing a shift to dollar-based platforms with gold traders for years. "The goal is to push, to create incentives for trading to be denominated in dollars. We cannot wait much longer," he said.
The Indian government has also stepped in to shield the rupee from surging gold prices. Due to India's reliance on gold imports, the precious metal affects its currency in the opposite way to Thailand—escalating import bills weaken the rupee. This week, Indian authorities more than doubled the import duty on gold and silver from 6% to around 15%, aiming to preserve foreign reserves for oil imports.
Under pressure from business groups, policymakers in Bangkok have limited options for baht intervention. Aggressive currency intervention risks displeasing the United States, Thailand's largest trading partner, while interest rate cuts carry significant risks.
For the Bank of Thailand, targeting large gold traders is a pragmatic move because they play an outsized role in driving exchange rate volatility, said Kausani Basak, an economist at ANZ. By focusing on a small group, policymakers can curb volatile, high-value flows without disrupting the broader market, she added.
Platform managers interviewed declined to identify the investors behind the large-scale trades but said there are hundreds of them. They are often older individuals, less involved in cryptocurrency, and due to their age, less inclined to trade at physical shops.
They described these investors as business owners with substantial cash flow, such as rubber plantation operators with annual revenues around 200 million baht, or apartment owners managing tens of thousands of units with monthly incomes exceeding 100 million baht.
Kritcharat Hiranyasiri, President of the MTS Gold Mae Thongsuk Group, said the central bank is trying to curb exchange rate volatility largely beyond its control—such as a weaker dollar and increased foreign inflows—and is making gold traders scapegoats.
"We have always maintained we are not the culprit. Perhaps on some days these activities add to volatility, but we are not driving the long-term appreciation," Kritcharat said.
A report by the London Bullion Market Association described Thailand as "one of the most vibrant retail trading environments in Asia." Unlike most countries where gold is held long-term, Thai consumers frequently buy and sell short-term, with half of all gold transactions conducted online.
Sittipong Sirimaskasem, an influencer, is another investor who shares his journey from cryptocurrency to gold with nearly 200,000 followers on TikTok. While his trade sizes are not the large volumes targeted by the central bank, his trading patterns mirror those of major players.
"Seeing profits in real-time is more satisfying than stock trading. The money is always there—no exchange rate issues, no fees, no complications. Even small fluctuations can earn you your coffee money," he said.
The Bank of Thailand said early signs indicate some trading has shifted to dollar platforms, though officials warn it is too early to conclude on the effectiveness of their intervention.
An analysis by Bloomberg Intelligence found the correlation between the dollar-baht pair and gold weakened after the central bank's move, though a fresh rally in gold could still support the baht. While the baht has retreated from its 2025 highs, the outbreak of war in the Middle East and the ensuing energy crisis have been the most significant drivers affecting the currency.
For trading platforms, a greater concern is whether the central bank will widen its crackdown to control lower-value trades. Although gold traders are racing to set up dollar-based platforms for affected clients, this could take months.
"All of us have good intentions; no one wants to harm the economy for personal gain," said Teerarat Jutavarakul, Managing Director of InterGold Gold Trade Co. Ltd., which also operates its own online platform. "We pray every day for the baht to weaken."
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