Key points
- Critics accuse the authorities of incompetence and class bias, warning that the measures risk crippling small businesses—including those in the gems and jewelry sector that rely on fluid transactions to survive.
- In a sweeping crackdown aimed at dismantling scam networks, the Bank of Thailand (BOT) has frozen millions of bank accounts across the country in recent weeks.
- But while BOT Governor Sethaput Suthiwartnarueput has defended the measures, telling Bangkok Gems News and other media that these are all “targeted and temporary,” the reality on the ground tells another story.
Bangkok Gems News: In a sweeping crackdown aimed at dismantling scam networks, the Bank of Thailand (BOT) has frozen millions of bank accounts across the country in recent weeks. Officials insist the move targets “mule accounts” used by fraudsters to launder illicit funds, and is essential to recover assets for scam victims. Yet the impact is spilling far beyond criminals, ensnaring ordinary Thais, foreign residents, and crucially, members of Thailand’s jewelry trade.
Small jewelry retailers and gem traders in Bangkok face turmoil as frozen accounts stall their businesses.
Image Credit: AI Generated
As daily transfer limits tighten and more accounts face scrutiny, frustration is boiling over. Critics accuse the authorities of incompetence and class bias, warning that the measures risk crippling small businesses—including those in the gems and jewelry sector that rely on fluid transactions to survive.
Jewelers Among the Hardest Hit
Thailand lost an estimated 6 billion baht (around $160 million USD) to fraudulent money transfers in the second quarter of 2025, with 24,500 reported victims. In response, authorities immobilized about 3 million accounts tied to 177,000 suspected mule accounts, while introducing daily online transfer caps between 50,000 and 200,000 baht.(reports are coming in that the number of frozen accounts are increasing day by day and could be even reaching about 20 million bank accounts!)
But while BOT Governor Sethaput Suthiwartnarueput has defended the measures, telling Bangkok Gems News and other media that these are all “targeted and temporary,” the reality on the ground tells another story. Street vendors, freelancers, and microbusinesses are struggling—and in Bangkok’s jewelry districts and provincial gem markets, the crisis is particularly painful.
Small jewelry retailers, goldsmiths, gem cutters, and boutique manufacturers have found themselves locked out of the very accounts they use to pay suppliers and process customer purchases. A sapphire dealer in Chanthaburi reported losing access to nearly 200,000 baht earmarked for incoming consignments. In Bangkok’s Chinatown, several family-owned jewelry shops said they were unable to pay craftsmen, forcing delays in orders ahead of the holiday season.
One small goldsmith in Nakhon Ratchasima lamented, “We rely on fast transfers to buy gold sheets and gems. With accounts frozen, everything stops—production, sales, wages. Clients don’t understand, but we cannot move money.”
Many small and mid-size Indian gemstone diamond and jewelry traders were also
affected by the bank freeze with many still unable to access their bank accounts and monies!
A Kafkaesque Struggle
Authorities insist resolving mistaken freezes is “straightforward,” requiring a police clearance or affidavit. Yet jewelers and gem dealers describe an ordeal of endless queues, inconsistent documentation demands, and hotlines that go unanswered. Bangkok Bank—serving over 17 million customers—has been singled out for sluggish responses. Some jewelry shop owners said staff simply advised them to “wait,” leaving businesses paralyzed for weeks.
The ripple effects are stark. In gem-trading hubs like Chanthaburi, buyers are now reluctant to deposit funds into Thai bank accounts for fear of entanglement. Small exporters, who rely on swift settlements to ship stones abroad, are seeing international clients hesitate. Meanwhile, jewelry craftsmen in provinces are being forced to accept cash payments or rely on informal credit—further straining already fragile post-pandemic recoveries.
Foreigners and Industry Traders Locked Out
The freeze has also swept up expatriates tied to the jewelry business, from retirees investing in gems to digital entrepreneurs selling jewelry online. Since May, Bangkok Bank has aggressively closed or frozen accounts lacking non-immigrant or retirement visas, citing anti-money laundering rules. This has left some foreign-owned jewelry startups unable to pay staff or receive payments from overseas buyers.
In Hua Hin, one British retiree who partly financed local jewelry workshops saw his pension account frozen for more than two months pending “KYC verification.” Digital entrepreneurs selling Thai-made jewelry on global platforms say they have turned to fintechs like Wise and Revolut, but limits and fees make scaling difficult.
Favoritism Accusations Erode Trust
While small jewelry shops and gem traders struggle, whispers of favoritism abound. Everyday accounts are scrutinized for minor transactions, but major conglomerates, politicians, and large financial groups appear unaffected. Opposition MPs call this “class warfare,” noting that the same system freezing 200-baht PromptPay transfers leaves luxury transactions by elites unchallenged.
For Thailand’s jewelry sector—already navigating competition from Vietnam, India, and online sellers—this perception of selective enforcement erodes confidence further.
Cash and Crypto Rising in Jewelry Trade
The disruption is pushing jewelers toward alternative systems. In Bangkok’s Yaowarat and Chanthaburi gem markets, more dealers are now accepting cash-only transactions. Some are experimenting with stablecoins or crypto-to-cash swaps for foreign buyers. Thailand’s pilot crypto-to-baht kiosks, initially targeting tourists, have reportedly seen growing use among gem traders seeking quicker liquidity.
But experts caution that while crypto offers an outlet, it also carries volatility and regulatory risks. Cash hoarding, meanwhile, exposes businesses to theft and liquidity shortages.
A Warning for Thailand’s Jewelry Future
For jewelers and gem dealers, the account freeze is not just a temporary hurdle—it threatens long-term viability in an industry already under global pressure. Buyers abroad may hesitate to wire funds to Thailand, while small workshops risk closure if they cannot pay workers or source raw materials.
“Thailand’s reputation as a reliable hub for gems and jewelry is at stake,” said a Bangkok-based gem consultant. “If the banking environment becomes unpredictable, foreign clients will take their business elsewhere.”
As BOT holds emergency talks with commercial banks, the industry waits anxiously. Without urgent reforms, the freeze could do more than disrupt accounts—it could undermine Thailand’s standing as a global jewelry hub.
Many Thais meanwhile are rushing to withdraw all their monies from private Thai banks and other government banks as the freezing of accounts are not stopping and, in some cases, some bank customers who initially got their accounts frozen and then issues resolved said that their accounts got frozen again. Many expats living in Thailand have not got their accounts unfrozen yet and are struggling while bank staff especially those from Bangkok Bank show no empathy or sympathy to the plight of the affected customers. It was alleged that the bank freezes were initiated during the time of the government lead by the Pheu Thai party.
This current banking fiasco should make foreigners think twice about wanting to retire or relocate to Thailand or for digital nomads to relocate here or even for foreigners to start or invest in businesses in Thailand or to buy properties such as condos here.
Media References:
https://thethaiger.com/news/national/bank-of-thailand-tackles-mule-account-freeze-impact
https://www.facebook.com/groups/lifeinhuahin/posts/2262789167512017
https://fosrlaw.com/2025/thailand-visa-crackdown-2025/
https://www.reddit.com/r/Bangkok/comments/1n5qjcy/bangkok_bank_account_crackdown_a_researched/
https://www.nationthailand.com/news/general/40055395
https://portail-asie.com/en/bangkok-bank-account-frozen-in-thailand
https://medium.com/%40cryppushcoin/p2p-exchanges-under-attack-why-binance-is-ditching-thb-and-how-to-protect-your-finances-in-2025-c1095b659663
https://www.youtube.com/watch?v=ocjl_T8iJIk
For the latest on how the bank freezes are affecting the jewelry industry, keep on logging to Bangkok Gems News.
