Thailand plans to open a digital currency sandbox for foreign tourists.

The Securities and Exchange Commission of Thailand (SEC) together with the Bank of Thailand is planning to implement a legal testing framework (sandbox) for cryptocurrency, allowing foreign tourists to swap digital assets for baht to spend locally. This is an expansion from the previous initiative focused in Phuket – according to Bangkok Post reported on Wednesday.

According to the SEC, this new pilot program – currently open for public comment – will allow travelers to swap digital assets through licensed entities, and then use the converted funds across regulated e-wallet platforms.

"This cryptocurrency sandbox is a direct continuation of the 'Phuket sandbox' proposal by former Prime Minister Thaksin Shinawatra at the end of last year. Both share the common goal of allowing the use of Bitcoin and other cryptocurrencies as a means of payment in tourist areas, aiming to promote acceptance," said Mr. Nirun Fuwattananukul – CEO of Gulf Binance.

According to the plan, approved participating units can provide services for a maximum of 18 months, with the possibility of extension for licensed exchanges, brokers, and digital asset dealers.

Interested enterprises must fully meet the criteria and conditions, service scope limits, spending limits of tourists, and comply with anti-money laundering regulations.

Although this initiative aims to enhance the competitiveness of the tourism sector through digital financial innovation, direct payments in cryptocurrency will not be permitted. Instead, the baht, after asset swap, must be spent through approved e-wallet providers – for example, payments via QR codes.

However, the plan is still facing some concerns from stakeholders in the industry.

The Tourism Council of Thailand (TCT) – a private organization promoting public-private cooperation, enhancing quality standards, and shaping tourism policies – has warned against rushing into implementation.

"We do not oppose this program, but the government needs to ensure that the entire ecosystem is ready for the use of cryptocurrency before implementation," said Mr. Bhummikitti Ruktaengam – Vice Chairman of TCT. He also mentioned that many stakeholders in Phuket are currently unaware of the public consultation process taking place.

One of the major concerns is the risk of money laundering, especially in the context of increasing illegal business activities by foreigners in Phuket. Mr. Ruktaengam warned that without clear regulations, cryptocurrency exchanges could be misused.

Meanwhile, tourism businesses have also expressed a desire for clearer guidelines regarding the list of digital assets allowed for trading, as well as which types of exchange services will be approved under this program.

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