The project builds on an earlier pilot program targeting Phuket and is intended to broaden the use of crypto in the rest of the tourism industry in the country.
The Securities and Exchange Commission (SEC) of Thailand and the Bank of Thailand are set to introduce a regulatory crypto sandbox that will allow foreign tourists to exchange their crypto assets with baht to spend in the country.
Main Points :-
1 :- Thailand is to introduce crypto sandbox whereby the tourists can exchange crypto into baht to spend it.2 :- The program is an extension of the pilot in Phuket and involves licensed operators.
3 :- Experts in the industry cautions that the ecosystem is not quite ready.
The initiative builds on an earlier pilot program that was centred on Phuket and seeks to broaden crypto usage in the wider tourism industry in the country, the Bangkok Post reported.
Visitors under the proposed sandbox would trade in cryptocurrencies with the licensed operators and consume the converted baht using regulated electronic money platforms, including QR code payments.
Thailand Expands Its Crypto Sandbox Program
The program is based on the idea initially put forward by the sandbox concept proposed by the previous Prime Minister Thaksin Shinawatra, where the country was to have Bitcoin and other cryptocurrencies accepted as a form of payment in tourist-concentrated regions, in order to increase adoption.
Authorized digital asset exchanges, brokers and dealers would be allowed to operate in the sandbox up to 18 months but may be extended.
To join, operators will have to meet strict eligibility criteria, abide by service restrictions, spend limits on tourists and conform to anti-money laundering regulations.
Nevertheless, the project has attracted the attention of some industry players.
The government was warned by the Tourism Council of Thailand (TCT) to make sure that the whole ecosystem is ready to roll out the program.
Bhummikitti Ruktaengam, the vice president of TCT, pointed out that most of the local stakeholders, including the ones in Phuket, are unaware about the current public consultation process.
Money laundering is also a major concern especially as illegal foreign enterprises in Phuket are on the rise.
In the absence of effective regulatory frameworks, there exists a danger that the crypto exchanges may be used to carry out illegal activities.
The tourism operators also want to be informed on the kind of crypto assets to be accepted, and the extent of the exchange services that are allowed.
More Nations Consider Cryptocurrency Payments for Tourists
Bhutan has also launched a program in May that enables tourists to pay almost everything that needs to be paid during their visit in cryptocurrency.The nation has joined Binance Pay and DK Bank to establish the world first national-level crypto tourism payment system.
The system will allow Binance users to pay in digital assets at all levels, including airline tickets and visa expenses, hotel accommodation, tours and even fruit stands on the road.
Similarly, Binance Pay has partnered with French fintech Lyzi to introduce the option to pay in cryptocurrencies to more than 80 businesses around the French Riviera, such as Cannes, Nice, Antibes and Monaco.
Visitors and locals can now make payments with stablecoins and other cryptocurrencies at different locations like hotels, restaurants, and luxury retailers by just scanning a QR code.
The system is instant in confirmation of transactions without gas fees and merchants are paid euro instantly via the platform integration.
