- Thailand’s crypto sandbox lets tourists swap coins for baht, spend easily.
- Sandbox project strictly monitored by SEC, central bank, anti-money laundering agencies.
- Tourists must use approved e-wallets, direct crypto payments not allowed.
Thailand is taking another big step to modernize its economy. According to the Bangkok Post, Thailand’s Securities and Exchange Commission (SEC) and the Bank of Thailand have joined forces to launch a national crypto sandbox. It is a project that will enable foreign tourists to exchange their digital currency for Thai baht to spend in the country.
Tourists Must Convert Digital Coins to Baht Before Using E-Wallets
First, the tourists will have a chance to trade their cryptocurrencies with licensed providers. They are then able to spend the converted baht using controlled e-wallets to purchase goods and services throughout Thailand. This concept began in January of last year when Thailand revealed its plans for a crypto sandbox in Phuket. As stated back then by former Prime Minister Thaksin Shinawatra, this would be a turning point in Thailand as well as the whole crypto industry.
Mr. Nirun, a government official addressing the Bangkok Post, clarified that the Phuket concept was only an idea. Now it has become a complete national initiative supported by the best financial regulators in Thailand. According to him, this is a clear example of a vision of Thailand to employ new technology and, at the same time, keep consumers safe.
In addition to that, this sandbox is not an experiment. The services shall be conducted in a controlled environment. It will be closely monitored by the SEC, the Bank of Thailand, the Anti-Money Laundering Office, and other agencies. They need to ensure that every rule is adhered to. This slow and diligent process reflects the intentions of Thailand to be the first country to adopt crypto and maintain high standards.
According to the SEC, the sandbox will experiment on how the tourists will be able to exchange digital coins for the local currency. However, tourists are unable to spend digital coins. They are required to change them to the baht currency and afterwards pay via the regulated e-wallets. This regulation is useful to keep things straightforward and within control.
Sandbox Exclusively Serves Foreign Tourists, E-Money Rules Ensure Smooth Use
In addition, licensed digital asset exchanges, brokers, and dealers can join the sandbox. First, they need to be approved by the SEC. When this is granted, they can offer their services for up to 18 months. This can be extended after its review by the SEC in case it is necessary.
This is a sandbox that will only cater to foreign tourists who are either visiting or are staying in Thailand on a short-term basis. In addition, the service providers are bound by the rules of the license provided by the SEC. They are also required to deal with the e-money providers regulated by the Bank of Thailand. This makes the system run smoothly.
Right now, the SEC in Thailand has also launched a public consultation on novel crypto regulations. The new regulations will provide certain criteria on the types of digital coins that are to be listed on licensed exchanges. This is aimed at safeguarding investors and, at the same time, permitting innovation. The people are free to submit their ideas by July 21.
Thailand also recently joined in the plans to allow tourists to spend crypto using systems linked to credit cards. This is a plan that was announced by Finance Minister Pichai Chunhavajira at an investment conference in Bangkok in May. He added that a pilot project on this is in process by the Bank of Thailand. In case of success, tourists would be able to connect their crypto with credit cards to use.
To sum up, Thailand is demonstrating to the world how to combine tourism and crypto. Through this sandbox, the country is not only opening its doors to tourists but also promoting the application of digital assets in a secure and intelligent manner.
The post Thailand Launches Crypto Sandbox for Tourists to Spend Digital Assets appeared first on Live Bitcoin News.
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