Thailand’s financial regulators have established a new national crypto sandbox project to facilitate the conversion of digital assets for incoming tourists. The Bank of Thailand and the Securities and Exchange Commission (SEC) are spearheading the venture as a means of promoting crypto adoption in the tourism industry.
This e-sandbox provides overseas visitors the ability to exchange cryptocurrency for the local currency of Thailand, the baht, through licensed virtual asset handlers as they travel. The e-money providers licensed by Thailand’s central bank can be used to spend the converted baht electronically.
However, Licensed brokers, exchanges, and dealers can register for the sandbox and must get the SEC’s permission to take part. The testing window will be available for 18 months, but it can be continued depending on the review of the regulator.
Participants must also be in line with SEC-imposed regulations, including customer verification, transaction limits, and compliance with anti-money laundering policies. Tourists can only spend the baht converted from crypto within approved systems. These include QR code-based payment platforms.
However, this sandbox would be a special testing ground upon which Thailand would be able to maintain strict control over the exchange of virtual assets among overseas visitors. However, this follows a previous proposal in the past year to launch the same initiative only in Phuket.
Crypto conversion services to promote spending by tourists
That prior proposal emerged from former Prime Minister Thaksin Shinawatra and would aim to pilot crypto transactions in tourism destinations. This national launch moves the proposition from a regional plan to a legitimately supported regulatory regime through official implementation.
Nirun Fuwattananukul, Gulf Binance Chief Executive, believes the new plan gives crypto a clear roadmap through the Thai economy. His comment reflects that the prior proposition lacked national regulatory support and proper guidelines to operate safely.
Vice Tourism Council President Bhummikitti Ruktaengam expressed concern over the lack of information shared with local tourism operators. He noted that no official announcement had been made to guide them on the program.
Few of the Phuket operators were even informed of the SEC’s public hearing that it conducted on the subject. He also raised issues of possible money laundering if the virtual currencies are exchanged without strong controls. The council wants a clear list of approved cryptocurrencies included in the program.
It also calls for uniform rules for all participants. Nonetheless, Thailand aims to simplify and secure tourism spending using a regulated digital sandbox. The system supports safer online financial transactions for foreign visitors.
