Thailand Expands Crypto Sandbox Nationwide to Boost Tourism Revenue

The Securities and Exchange Commission (SEC) and the Bank of Thailand (BOT) have introduced a strategic program called the “crypto sandbox,” designed to facilitate easier transactions for foreign tourists in Thailand. This initiative allows tourists to convert their digital assets into Thailand’s baht currency, aiming to attract more visitors and boost the nation’s economic growth through increased tourism revenue.

The project, initially piloted in Phuket, has expanded nationwide following positive feedback and strong adoption. Thailand hopes that the sandbox will not only enhance tourism revenue but also establish the country as a regional leader in fintech by adopting crypto-friendly policies.

The crypto sandbox project supports the crypto ecosystem by enabling tourists with cryptocurrencies like Bitcoin to access digital asset trading platforms. These platforms include crypto exchanges, cryptocurrency middlemen, and dealers, allowing tourists to convert their cryptocurrencies into baht. Once converted, tourists can use QR codes obtained from online payment platforms and digital wallets to pay for goods and services in Thailand’s currency. Notably, direct payments using cryptocurrencies are not permitted under the country’s regulations, ensuring a safer conversion process under strict guidelines.

The project includes protective measures to address economic challenges and promote responsible use of funds by tourists. It outlines well-defined operational limits and requires all service issuers to obtain licenses and adhere to the country’s know-your-customer (KYC) and anti-money laundering (AML) regulations. Foreign tourists must undergo identity confirmation processes before converting their digital assets to Thailand’s currency. Additionally, the SEC has implemented spending measures, allowing tourists to spend a maximum of ฿50,000 (approximately USD 1,375) monthly at local shops and markets, and up to ฿500,000 (approximately USD 13,750) monthly at certified businesses like hotels and expensive restaurants.

The project will initially run for 18 months, with the possibility of extension based on performance, public reaction, and safety reports. The SEC and BOT have invited public feedback on the initiative, with a deadline of August 13. This feedback is sought from industry participants, banks, and tourism companies to solidify Thailand’s position as a fintech leader and create a conducive environment for the cooperation of crypto and traditional money, attracting digital asset holders worldwide.

Despite the project’s potential, it has faced criticism from some sectors in Phuket’s tourism industry. Concerns include a lack of education and communication about the project, uncertainty about which cryptocurrencies will be accepted, and the risk of abuse if monitoring systems are inadequate. However, the project is still viewed as a potential game-changer for the tourism sector, with the possibility of being adopted by other countries and becoming a global fintech trend.