Thailand Launches Crypto Sandbox for Tourists to Convert Digital Assets to Baht

The Securities and Exchange Commission (SEC) of Thailand, in collaboration with the Bank of Thailand (BOT), has introduced a crypto sandbox initiative. This initiative aims to allow foreign tourists to convert their digital assets into baht, Thailand’s national currency. The SEC is actively seeking public feedback on this proposal through its official website before proceeding with its implementation.

The SEC board initially approved the framework's principles during separate meetings held in March and July. On July 15, the agency opened a public consultation on the proposal, with feedback being accepted until August 13, 2025. This new initiative is designed to promote innovation through the use of digital assets, with the goal of boosting the economy and tourism industry in Thailand. It will complement the existing digital assets framework while ensuring proper risk protection measures for the new regulatory sandbox.

Nirun Fuwattananukul, chief executive of Gulf Binance, has confirmed that this initiative will enhance the adoption of digital assets in the country. This will be achieved by allowing cryptocurrencies to be used as payment for local spending. However, direct crypto payments are not permitted; instead, crypto must be spent through approved e-money providers, enabling transactions such as QR code payments. The eligible participants in the sandbox include digital asset exchanges, digital asset brokers, and digital asset dealers.

Despite the innovative intent and risk protection measures of the initiative, it has sparked some concerns among industry stakeholders. The vice president of the Tourism Council of Thailand (TCT), Bhummikitti Ruktaengam, 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.” Ruktaengam warned against the risk of money laundering, emphasizing that without clear regulations and compliance, digital asset exchanges could be misused.

The launch of this crypto regulatory sandbox for the tourism industry marks a significant step forward for Thailand in aligning its digital assets regulations with global standards. However, despite the mandatory licensing and anti-money laundering regulations for the new proposal, industry stakeholders remain concerned that exchanges could still be involved in illicit activities. The SEC's proactive approach in seeking public feedback is a crucial step in addressing these concerns and ensuring a smooth implementation of the initiative.