The initiative builds upon a previous pilot program that concentrated on Phuket and seeks to increase the utilization of crypto in the country’s broader tourism sector.
The Securities and Exchange Commission (SEC) and the Bank of Thailand are in the process of establishing a regulatory crypto sandbox in Thailand. This sandbox will allow foreign travelers to convert their crypto assets into baht for local spending.
According to a Bangkok Post report, the initiative is intended to broaden cryptocurrency adoption throughout the country’s tourism sector, building upon a previous demonstration program that concentrated on Phuket.
Visitors would exchange cryptocurrencies with licensed operators and utilize the converted baht through regulated electronic money platforms, such as QR code payments, in the proposed sandbox.
Thailand Enhances Crypto Sandbox Initiative
The program is based on the Phuket sandbox proposal, which former Prime Minister Thaksin Shinawatra first introduced. The proposal aimed to increase the adoption of Bitcoin and other cryptocurrencies by incorporating them as payment options in tourist-heavy areas.
Licensed digital asset exchanges, brokers, and merchants would be eligible to operate within the sandbox for a maximum of 18 months, with the potential for an extension.
To participate, operators must adhere to stringent eligibility standards, observe service and tourist spending limits, and comply with anti-money laundering regulations.
Nevertheless, certain industry representatives have expressed apprehension regarding the initiative.
The Tourism Council of Thailand (TCT) recommended that the government ensure the preparation of the entire ecosystem prior to the program’s implementation.
TCT’s vice president, Bhummikitti Ruktaengam, highlighted that many local stakeholders, including Phuket, are unaware of the ongoing public consultation process.
Money laundering remains a major concern, especially regarding the growth of illegal foreign businesses in Phuket.
Without defined regulatory frameworks, there is a possibility of exploiting crypto exchanges for illicit activities.
Additionally, tourism operators are seeking clarification on the types of crypto assets they will accept and the extent of permissible exchange services.
More Countries Consider Crypto Payments for Tourists
Bhutan implemented an initiative in May that enables travelers to utilize cryptocurrency to pay for nearly all aspects of their visit.
The nation has collaborated with Binance Pay and DK Bank to establish the world’s first national-level crypto tourism payment system.
The system allows travelers with Binance accounts to utilize digital assets for various transactions, including airline tickets, visa fees, hotel stays, excursions, and roadside fruit stalls.
Similarly, Binance Pay has collaborated with French fintech Lyzi to provide cryptocurrency payment options to more than 80 businesses along the French Riviera, including popular destinations such as Cannes, Nice, Antibes, and Monaco.
Both locals and visitors now accept stablecoins and other cryptocurrencies as payment methods at various establishments, including hotels, restaurants, and luxury retailers. You can accomplish this by scanning a QR code.
Merchants receive immediate euro settlements through the platform’s integration, while the system provides instant transaction confirmation without gas fees.
