Digital asset exchange operators have welcomed a new initiative by the Securities and Exchange Commission (SEC) and the Bank of Thailand to introduce a cryptocurrency sandbox, aimed at enabling foreign tourists to use digital assets during their stay.
Industry leaders say the move could significantly boost crypto adoption across the country.
The SEC has opened a public hearing on the proposed regulatory sandbox, which focuses on allowing international visitors to convert their digital assets into baht for use in Thailand. The proposal is designed to support the tourism sector while also encouraging financial innovation and broader digital asset utilisation.
The plan is seen as part of a wider effort to integrate digital finance into the economy and strengthen Thailand’s competitiveness in the global tourism market.
“This crypto sandbox builds directly 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,” said Nirun Fuwattananukul, chief executive of Gulf Binance.
“The new sandbox proposal is no longer just limited to Phuket, but applies nationwide.”
Mr. Nirun, a co-founder of the world’s largest cryptocurrency exchange and operator of Binance TH, said the difference between the past and present proposals lies in execution and scale.
“While the original Phuket proposal was conceptual and regionally focused, 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,” he said.
“What’s significant is Thailand’s consistent vision in moving from the initial proposal to concrete implementation with regulatory safeguards. This demonstrates our commitment to leading cryptocurrency adoption in the region while ensuring consumer protection and compliance standards,” he added.
A Controlled Testing Ground
Under the proposal, foreign tourists would be allowed to exchange their digital assets into baht through licensed digital asset operators. These funds could then be spent via e-money service providers for purchases throughout the country, the SEC said in a statement.
All services would operate within a controlled sandbox environment jointly supervised by the SEC, the Bank of Thailand, the Anti-Money Laundering Office, and other relevant regulatory bodies.
The sandbox is intended to serve as a testing ground for digital asset conversion services tailored to foreign visitors. However, direct use of digital assets for payments will not be permitted. Instead, tourists must use converted baht via approved e-money platforms.
Participation will be limited to licensed exchanges, brokers, and dealers approved by the SEC. Once accepted into the sandbox, they may provide services for up to 18 months, with possible extensions subject to regulatory review.
The services are restricted to non-resident tourists or those temporarily staying in Thailand. Participating operators must comply with their licensing terms and ensure compatibility with central bank-regulated e-money providers.
“This will allow tourists to spend their converted baht electronically, such as via QR code payments.”
All participants must adhere to defined criteria, including tourist spending limits, service scopes, and anti-money laundering regulations. The framework is designed to encourage innovation while maintaining strict consumer protections and financial security.
The SEC reiterated that the sandbox is part of a broader national strategy to integrate digital finance into tourism and ensure the stability of the financial system.
Concerns Raised in Phuket
Despite the proposal’s ambition, concerns have emerged from industry stakeholders in Phuket, where the pilot version of the initiative was originally proposed.
Bhummikitti Ruktaengam, vice-president of the Tourism Council of Thailand (TCT), criticised the lack of public awareness and regulatory clarity around the sandbox, particularly among local tourism operators.
He said the public hearing currently underway has received little attention in Phuket, and tourism businesses remain largely uninformed.
“We’re not opposed to this scheme, but the government should assure that it has prepared the entire ecosystem for cryptocurrency use before starting this programme,” Mr Bhummikitti said.
He expressed specific concerns over the risk of money laundering, especially in Phuket, which has seen a rise in illicit foreign-run enterprises.
“We would like the regulators to clarify the rules, allowing people to understand the same principles for this programme,” he said.
Additionally, tourism operators have called for more transparency about which cryptocurrencies will be allowed in the sandbox, saying businesses need clarity on what assets can be exchanged under the scheme.
