Thai financial authorities are seeking the public’s feedback on a crypto sandbox pilot program for tourists aimed at enhancing the country’s appeal as a tech-savvy destination by providing more convenient and flexible payment options.
The sandbox will allow individuals to exchange their crypto assets through licensed operators and use the converted Thai Baht to buy goods and services via e-money service providers.
“This initiative builds upon the existing ecosystem covering both the digital asset trading system and electronic money (e-money) system, while maintaining appropriate and adequate risk protection measures,” the SEC explained.
Under the pilot program, interested foreign tourists would be required to open an account and transact through sandbox participants, the digital asset operators under the SEC’s supervision, and e-money business operators under the BOT’s supervision.
The sandbox includes “appropriate control, supervision, and risk preventive measures through relevant regulatory agencies, without allowing digital assets to be used directly as a means of payment for goods and services at merchants.”
They must also conduct Know Your Customer/Customer Due Diligence (KYC/CDD) procedures under the Anti-Money Laundering Office’s (AMLO) criteria and provide digital asset exchange services according to the type of license granted by the SEC.
Additionally, they must establish connectivity with regulated e-money operators to enable foreign tourists to use the converted Thai baht for purchases through electronic channels, including QR code scanning.
Sandbox participants must also comply with relevant criteria, including collecting and evaluating user data, using blockchain forensics tools to identify illicit transactions, reporting information to the SEC, and preparing exit plans from the sandbox.
He explained that the two proposals shared the “core concept of allowing Bitcoin and cryptocurrencies as payment methods in tourist areas to drive adoption.” However, the new sandbox proposal is not limited to Phuket, but a nationwide program.
Fuwattananukul considers that the two initiatives differ in their implementation, with the original proposal being conceptually and regionally focused. Meanwhile, “this initiative has formal backing from Thailand’s primary financial regulators. This represents an evolution from an experimental concept to a structured regulatory framework with proper oversight.”
The CEO highlighted Thailand’s “consistent vision” and “commitment to leading cryptocurrency adoption in the region while ensuring consumer protection and compliance standards.”
