SEC and BOT launch crypto sandbox to boost tourism, allow foreign tourists to use digital assets in Thailand

The Securities and Exchange Commission (SEC), in collaboration with the Bank of Thailand (BOT), is preparing to introduce a crypto sandbox that will allow foreign tourists to exchange digital assets for Thai baht and use them for spending within the country. The initiative aims to boost tourism and create greater convenience for foreign visitors holding digital assets.

Recent data shows a significant increase in the use and ownership of digital assets (DA) globally. In 2024, the number of DA holders rose by 6.38%, from 580 million to 617 million, with the market capitalisation of digital assets peaking at approximately $3.7 trillion.

According to the Ministry of Tourism and Sports, Thailand welcomed 35.54 million foreign tourists in 2024, marking a 26.27% increase compared to 2023, generating 1.67 trillion baht in revenue—a 34% increase compared to 2019. This growth has been driven by the return of travel post-Covid-19 and the country’s economic and tourism stimulus measures.

However, the current situation still lags behind pre-Covid figures, with 39.91 million tourists and 1.91 trillion baht in revenue in 2019.

Recognising the importance of integrating financial innovation and digital assets to support Thailand's economic and tourism growth, the SEC has proposed a sandbox project that would enable foreign tourists to convert their digital assets into Thai baht for spending. This initiative will complement existing systems such as cryptocurrency trading and electronic money (e-money), while ensuring proper risk protection measures are in place.

The SEC board approved the principles for the sandbox framework during meetings held on March 6 and July 3. The SEC has now opened a public consultation on the proposal, with feedback being accepted until August 13, 2025 via the SEC website.

Anek Yuyuen, Deputy Secretary-General and spokesperson for the SEC, revealed that the SEC has been collaborating with the BOT to establish a sandbox programme for foreign tourists. This initiative will allow them to exchange their digital assets into Thai baht and use it for payments, contributing to the country’s economic recovery and enhancing the tourism sector.

The SEC has outlined that foreign tourists wishing to exchange digital assets for Thai baht must open accounts and transact through licensed digital asset operators under the SEC’s oversight, as well as e-money operators regulated by the Bank of Thailand. This exchange process will be conducted within the Sandbox framework, which will ensure proper risk management and regulatory compliance.

The programme will only apply to tourists temporarily staying in Thailand. These tourists will undergo the Know Your Customer (KYC) process in accordance with the Anti-Money Laundering Office (AMLO) standards and will be able to buy goods or services using baht obtained from digital asset exchanges, including through methods such as QR code payments.

The key details of the programme are as follows:

1. Foreign tourists will be allowed to make payments to small merchants (e.g., street vendors or market sellers) using the Thai QR Code system, with a monthly limit of 50,000 baht per person.

2. Payments to verified merchants (those who have undergone the Know Your Merchant (KYM) process) will be allowed with a higher limit of 500,000 baht per person per month.

The SEC has also published a consultation document for public feedback, which will be open until 13 August 2025. This initiative is expected to enhance Thailand’s appeal as a destination for digital-savvy tourists, providing them with more convenient and flexible spending options.

Merkle Capital supports the exchange of crypto to baht

Woramet Chanseng, Investment Advisor at Merkle Capital Co., Ltd., stated that the company recognises the government's intention to support the tourism sector and experiment with the use of digital assets. Additionally, it aims to mitigate potential impacts on the traditional financial system (by not directly accepting digital assets).

Given the factors mentioned, the Sandbox experiment presents an opportunity for Thailand to increase its revenue from tourism by providing additional access to domestic goods and services. It will also positively affect the Thai baht as payments via e-money will require digital assets to be converted into baht, he said.

Thailand is currently the fifth largest holder of cryptocurrency globally and the largest in Asia, which means the country's fundamentals are well-suited for a meaningful Sandbox trial. It also presents an opportunity for Thailand to potentially be recognised as a digital asset hub in the future.

However, the project is still in its consultation phase and faces challenges, such as the complexity of identity verification for both users and service providers. If this initial phase proves successful, it will be beneficial for the country in the long term, with new capital flowing into Thailand, increasing demand for the baht, and the possibility of pushing for a digital baht, positioning Thailand as a hub for the digital economy, said Woramet.