In continuation with its cryptocurrency and blockchain expansion, the Securities and Exchange Commission, in conjunction with the Bank of Thailand, is jointly launching a national crypto sandbox to boost tourism. The initiative will allow foreign tourists to convert digital assets into Thai baht for spending. Tourists can exchange crypto via licensed providers and use the converted baht through regulated e-wallets across the country.
Thailand’s SEC launched a public hearing on the proposed national crypto sandbox and hopes for positive feedback. The SEC and Thailand’s central bank believe the initiative would drive crypto adoption, promote innovation, and support the economy. This move underscores Thailand’s broader plans to boost the tourism sector by enhancing cryptocurrency utilisation and integration.
Crypto Sandbox Demonstrates Thailand’s Crypto Vision
The crypto sandbox isn’t a new idea, according to the Chief Executive of Gulf Binance, Nirun Fuwattananukul. It builds directly on Thaksin Shinawatra’s Phuket sandbox proposal from 2024. While both share the same core concept of using Bitcoin and other digital assets as a form of payment in tourist areas, the former sandbox proposal was limited to Phuket.
“The new sandbox proposal is no longer just limited to Phuket, but applies nationwide,” the executive said. He said the major difference between the two initiatives is implementation. The Thai co-founder of Binance said the initial proposal was “conceptual and regionally focused.” He heaped praises on the revamped initiative, calling it “an evolution from an experimental concept to a structured regulatory framework.”
He also highlighted Thailand’s consistent vision in moving from the former proposal to concrete implementation with proper oversight. “This demonstrates our commitment to leading cryptocurrency adoption in the region while ensuring consumer protection and compliance standards.”
How the New Crypto Sandbox Works
Under the new sandbox proposal, tourists with cryptocurrencies can swap them into baht via licensed crypto asset service providers. They can use the converted funds through e-money service providers to pay for services across Thailand. According to the SEC, the services will be properly monitored by the Bank of Thailand, the Anti-Money Laundering Office, and other regulatory agencies.
The SEC hopes to use the sandbox as a pilot for cryptocurrency conversion services for tourists. The regulatory body insists that tourists can’t use the digital asset directly as a form of payment. They must convert them to baht via regulated platforms, such as exchanges, brokers, or dealers, for use in the country.
According to the Thai SEC, licensed digital asset exchanges and brokers can apply to operate in the sandbox. Once approved by the SEC, licensed operators can provide services for up to 18 months, with an option for extension pending the SEC’s consideration. For now, sandbox services are restricted to tourists or temporary residents in Thailand.
Tourism VP Raises Alarm About Illegal Activities
The Vice President of the Tourism Council of Thailand (TCT), Bhummikitti Ruktaengam, has raised several concerns about the new pilot initiative. First, the SEC and the Bank of Thailand have yet to clarify the regulations surrounding the crypto sandbox properly. Therefore, the public is not properly enlightened about the scheme.
“We’re not opposed to this scheme, but the government should ensure that it has prepared the entire ecosystem for cryptocurrency use before starting the programme,” he noted. He added that the public is unaware of any public hearing the SEC is conducting.
The second concern Mr. Bhummikitti raised is money laundering. Thailand has been plagued by illegal foreign businesses conducting illicit activities. In his view, he would like to know how the sandbox program can be utilized without facilitating money laundering and other criminal activities.
Should the Thai Government Be Worried?
The latest sandbox initiative marks a turning point from the earlier initiative, which seemed restrictive. It’s a strategic initiative that will foster economic growth through tourism. By enabling simple crypto-to-baht spending, Thailand is positioning itself as an appealing hub for crypto-affluent tourists.
Additionally, it will enhance capital flows and ensure crypto conversions are traceable. This will further curb tax evasion and ensure total transparency. Licensed operators could also see increased revenue from Sandbox participation, which fosters ecosystem growth.
Although the Tourism Council raised concerns about money laundering and other illicit activities, it’s believed that clearer rules and strong enforcement could curb the act. Effective KYC compliance will also prevent illicit actors from exploiting the program. If these align, Thailand could serve as a global model for driving tourism through crypto.
