Thailand Moves to Rein In Online Gold Trading as Prices Hit Record Highs
BANGKOK — In a bid to curb currency volatility fueled by speculative trading, Thailand's central bank is imposing new caps on online gold transactions. The measures, set to take effect in March, come as gold prices scale unprecedented heights both globally and domestically.
Assistant Governor Pimpan Charoenkwan stated on Friday that the regulations would cap online gold trades conducted in Thai baht at 50 million baht (approximately $1.6 million) per user per day. Transactions exceeding this limit will require prior authorization from the authorities.
"While online gold trading has grown significantly, these rules are designed not to stifle the market but to improve its transparency and oversight," Pimpan said. She emphasized that the daily limit would have minimal impact on most retail traders while providing a check on large-scale flows that can sway the baht's value.
The new framework includes exemptions: holdings above 50 million baht in user accounts before January's end can be sold back to platforms without extra approval. The rules also do not apply to trades in foreign currencies or to physical gold transactions over the counter.
Platform operators will now be required to maintain detailed transaction records and report regularly to the central bank—a move officials say will also aid in anti-money laundering efforts.
The regulatory push follows a period of extreme volatility. Global gold prices breached $5,000 per ounce this week, while in Thailand, prices soared past 80,000 baht per traditional "baht-weight" (about 15.2 grams) on Thursday before retreating sharply on Friday.
In a speech earlier this week, Bank of Thailand Governor Vithai Ratanakorn noted that gold trading has long existed in a regulatory gray area despite being a cornerstone of Thai savings culture. "With the stock market underperforming in recent years, more people have turned to gold," he said. Online platforms run by established gold shops—which often act as de facto financial institutions—have made trading accessible without a physical visit.
Analysts point out that large-volume online sales can create ripple effects: when investors sell gold, shops often convert proceeds from dollars to baht, exerting upward pressure on the local currency.
Market Voices: Mixed Reactions from Traders
Chalerm Srisuk, 45, Bangkok-based small business owner: "I trade gold online to diversify from stocks. A 50-million-baht daily limit is far above what I'd ever trade. If this brings more stability, it's welcome."
Sirin Patel, 38, investment consultant: "This is a prudent step. Unchecked flows in a market this size can distort currency stability. The reporting requirements should help legitimize the sector long-term."
Anong Vichai, 52, active online trader: "More red tape! The government sees us making gains and suddenly wants 'transparency.' This will just push big players to use foreign currencies or physical deals. It hurts ordinary investors who trusted these platforms."
David Chen, analyst with ASEAN Financial Insights: "Thailand is catching up to regional peers in monitoring digital commodity trading. The exemptions show they're trying not to disrupt existing holdings, but the focus is clearly on preventing the baht from becoming a proxy for gold speculation."