Thailand Considers Crypto Sandbox for Tourists
Thailand Eyes Crypto Sandbox for Tourists to Boost Spending
Thailand's Securities and Exchange Commission (SEC) and the Bank of Thailand are exploring a regulatory sandbox to allow foreign tourists to convert cryptocurrency into Thai Baht for local spending. This initiative expands on a previous proposal centered around Phuket, according to a report by the Bangkok Post.
The proposed sandbox, currently under public review, aims to facilitate cryptocurrency exchange through licensed operators. Tourists can then spend the converted funds via regulated e-money platforms, according to the SEC.
Nirun Fuwattananukul, CEO of Gulf Binance, noted that this crypto sandbox builds upon former premier Thaksin Shinawatra’s Phuket sandbox proposal from late last year. Both share the core concept of allowing Bitcoin and cryptocurrencies as payment methods in tourist areas to drive adoption.
Sandbox Program Details
The sandbox program allows approved operators to provide services for up to 18 months, with potential extensions for licensed digital asset exchanges, brokers, and dealers. Operators interested in participating must meet specific criteria, including:
- Compliance with eligibility criteria
- Service scope limitations
- Tourist spending caps
- Anti-money laundering regulations
Restrictions and Concerns
While the initiative aims to boost tourism through digital finance, direct cryptocurrency payments are prohibited. Instead, converted Baht must be spent through approved e-money providers, such as via QR code payments. Despite the innovative intent, industry stakeholders have raised concerns.
The Tourism Council of Thailand (TCT) has cautioned against rushing the implementation. Bhummikitti Ruktaengam, TCT Vice President, stated, "We’re not opposed to this scheme, but the government should ensure that the entire ecosystem is prepared for cryptocurrency use before launching the program." He also highlighted that many stakeholders in Phuket were unaware of the ongoing public hearing.
Key Concerns Highlighted:
- Money Laundering: Increased illegal foreign businesses in Phuket raise concerns about potential misuse of crypto exchanges without clear regulations.
- Clarity Needed: Tourism operators seek clarity on eligible crypto assets and permitted exchange services.
As Thailand moves forward with this initiative, these concerns will need addressing to ensure a secure and effective implementation.
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