Thailand’s proposal to launch a cryptocurrency sandbox for foreign tourists has reached the public hearing stage. The program will be a joint effort between the SEC and the central bank.
According to a recent report from Bangkok Post, government regulators have scheduled a public hearing for the sandbox proposal. The crypto sandbox is meant to cater towards foreign tourists and help convert digital assets into Thai baht through local exchanges so that they may be able to use crypto for everyday transactions in the country.
The crypto exchanges will be established within a controlled environment, hence the sandbox, where operational matters will be overseen by the SEC, the central bank, the Anti-Money Laundering Office and other regulatory agencies. It will serve as a testing ground for converting digital assets in the country.
The program aims to promote the country as a digital asset hub, fostering innovation and adoption for the crypto industry in the region. The proposal is also supported by Gulf Binance, which is a joint venture between Binance and Gulf Innova.
Chief executive of Gulf Binance, Nirun Fuwattananukul, said that the crypto sandbox concept builds upon the core idea originally suggested by the former Thailand premier Thaksin Shinawatra about a crypto sandbox in Phuket.
“Both share the core concept of allowing Bitcoin (BTC) and cryptocurrencies as payment methods in tourist areas to drive adoption,” said Fuwattananukul. The only difference is, instead of just executing the proposal in Phuket, the sandbox will be implemented nationwide.
“This represents an evolution from an experimental concept to a structured regulatory framework with proper oversight,” he continued.
How will Thai’s crypto sandbox be implemented?
The crypto sandbox will run for up to 18 months with a possible extension period depending on the agency’s judgement. Services within the sandbox are only available to foreign visitors who are residing in Thailand temporarily.
Under the crypto sandbox, tourists will be able to pay using cryptocurrency by scanning QR codes that will automatically convert crypto into fiat currency through licensed exchanges. However, tourists must also comply with spending limits and anti-money laundering requirements.
The crypto sandbox will be open to licensed crypto exchanges, brokers and other web3 service providers that have been approved by the SEC. Once approved, operators must comply with the requirements set by government regulators and establish a working partnership with e-money providers.
Earlier this year, the Thai SEC announced that they would be banning public access to a number of unlicensed crypto exchanges by June 28. Many major exchanges such as Bybit, OKX, and CoinEx were affected by the ban as they were accused of offering crypto services without a license in the region.
