The Bank of Thailand has moved to tighten regulation of online gold trading, introducing a daily transaction cap of fifty million baht per person on digital platforms settled in Thai baht as part of a broader effort to reduce volatility in the national currency and strengthen financial oversight.

Announced by Assistant Governor Pimphan Charoenkwan and set to take effect on March first, the new framework aims to improve transparency and limit large-scale trades that have coincided with periods of outsized pressure on the baht.

Under the rules, transactions above the daily threshold will require prior approval from the central bank, and a series of additional conditions will apply to all gold trades.

These include a prohibition on net settlement and the use of third-party bank accounts, mandatory full electronic settlement, and a requirement that sellers hold fully paid gold on the platform before offering it for sale.

Trades settled in foreign currencies, physical transactions at traditional gold shops and gold savings arrangements that do not permit resale are exempt from the cap, and holders of gold valued above fifty million baht before the end of January will be permitted to sell their existing holdings without restriction.

The move follows a period in which the baht strengthened markedly against the U.S. dollar, partly driven by large volumes of online gold trading, which the central bank has identified as contributing to currency movement.

By capping daily online gold trades and enhancing reporting and settlement standards, the Bank of Thailand intends to better align trading practices with broader financial stability goals while safeguarding the competitiveness of Thailand’s export and tourism sectors and curbing risks of illicit financial activity.