High hopes for new crypto sandbox

The initiative aims to lure more tourists to Thailand by making it easier to spend cryptocurrency at outlets around the country, writes Nareerat Wiriyapong

- Nareerat Wiriyapong

In the increasingly competitive tourism landscape amid a global economic slowdown, pundits believe recently endorsed crypto-friendly measures will lift Thailand's attractiveness in the eyes of tech-savvy, high-spending tourists.

Nirun Fuwattananukul, chief executive of Gulf Binance, said the new crypto sandbox addresses several structural challenges facing Thailand's tourism industry, while positioning it for the future.

“Thailand will become one of the world’s major tourist destinations that integrates digital assets into the visitor experience,” he said, referring to a joint effort by the Securities and Exchange Commission (SEC) and the Bank of Thailand to launch the crypto sandbox.

“This technological leadership will attract tech-savvy, high-spending tourists who are early adopters of digital assets.”

The SEC revealed earlier this month it started public hearings on the proposed digital asset regulatory sandbox to allow foreign tourists to convert digital assets into baht for use during their stay here.

Under the proposal, tourists holding digital assets can exchange them for baht via licensed digital asset operators, using the converted funds through e-money service providers to pay for goods and services across the country.

The services are to operate within a controlled sandbox environment overseen by the SEC, the central bank, the Anti-Money Laundering Office and other regulatory agencies.

“The sandbox allows tourists to pay at roadside food stalls and high-end department stores, eliminating payment friction and making Thailand a more convenient destination,” said Mr Nirun.

“Cryptocurrency holders often earn a high income and have significant disposable income. By catering to this market, Thailand can grow this tourism segment, focusing more on experiences and services that align to Thailand’s strengths.”

He said the sandbox could also benefit the tourism industry in the long term.