Thailand’s Securities and Exchange Commission (SEC) and the Bank of Thailand are preparing to launch a regulatory crypto sandbox that will enable foreign tourists to convert their crypto assets into baht for spending locally.
Key Takeaways:
Thailand plans to launch a crypto sandbox allowing tourists to convert crypto into baht for spending. The program expands on Phuket’s pilot and involves licensed operators. Industry experts warn the ecosystem isn’t fully prepared.The initiative expands on a prior pilot program focused on Phuket and aims to widen crypto adoption across the country’s broader tourism sector, according to a report by the Bangkok Post.
Under the proposed sandbox, visitors would exchange cryptocurrencies through licensed operators and use the converted baht via regulated electronic money platforms, such as QR code payments.
Thailand Expands Crypto Sandbox Program
The program builds on the concept first introduced by former Prime Minister Thaksin Shinawatra’s Phuket sandbox proposal, which sought to integrate Bitcoin and other cryptocurrencies as payment options in tourist-heavy areas to boost adoption.
Licensed digital asset exchanges, brokers, and dealers would be eligible to operate within the sandbox for up to 18 months, with the possibility of extension.
Operators must adhere to strict eligibility standards, comply with service limitations, observe spending caps for tourists, and follow anti-money laundering rules to participate.
However, the initiative has raised concerns among some industry voices.
The Tourism Council of Thailand (TCT) cautioned that the government should ensure the readiness of the entire ecosystem before launching the program.
Bhummikitti Ruktaengam, TCT’s vice president, highlighted that many local stakeholders, including those in Phuket, remain unaware of the ongoing public consultation process.
Money laundering remains a significant worry, particularly with the increase of illicit foreign businesses operating in Phuket.
Without clear regulatory frameworks, there is a risk that crypto exchanges could be exploited for illegal activities.
Tourism operators are also seeking clarity regarding which crypto assets will be accepted and the scope of permitted exchange services.
More Countries Consider Crypto Payments for Tourists
In May, Bhutan introduced an initiative that allows tourists to pay for nearly every aspect of their visit using cryptocurrency.
The country has partnered with Binance Pay and DK Bank to create the world’s first national-level crypto tourism payment system.
The system enables travelers with Binance accounts to use digital assets for payments ranging from airline tickets and visa fees to hotel stays, tours and even roadside fruit stalls.
Likewise, Binance Pay has teamed up with French fintech Lyzi to bring cryptocurrency payment options to over 80 businesses along the French Riviera, including hotspots like Cannes, Nice, Antibes, and Monaco.
Customers, both visitors and locals, can now pay using stablecoins and other cryptocurrencies at various establishments such as hotels, restaurants, and luxury retailers by simply scanning a QR code.
The system offers instant transaction confirmation without gas fees, while merchants receive immediate euro settlements through the platform’s integration.
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