The Securities and Exchange Commission (SEC) and the Bank of Thailand (BOT) have come up with a strategic program, “crypto sandbox,” making it much easier for foreign tourists to stay in Thailand.
With the program, they can change their digital assets to Thailand’s baht currency. This project comes when Thailand aims to attract more tourists to increase revenue, contributing to the nation’s economic growth.
Initially piloted in Phuket, the initiative now expands nationwide after receiving positive feedback and strong adoption. Thailand hopes the sandbox will boost tourism revenue and cement its role as a regional fintech leader by embracing crypto-friendly policies.
Thailand embraces the crypto sandbox project under stricter regulatory measures
The crypto sandbox project has greatly supported the crypto ecosystem. For instance, tourists possessing cryptocurrency like Bitcoin do not have to worry about how they will survive in Thailand.
This is because the project permits them to freely access digital asset trading platforms like crypto exchanges, cryptocurrency middlemen, and dealers to convert their cryptocurrencies to the baht.
Afterwards, the tourists can pay for goods and services using the QR codes obtained when they use Thailand’s currency on online payment platforms and digital wallets.
Notably, based on the country’s regulations, one cannot directly make payments using cryptocurrencies. Therefore, as the project promotes financial technology, it provides a safer way to convert cryptocurrencies into regular money for use under the strict regulations set.
The crypto sandbox project also includes protective measures to address economic challenges and ensure tourists use their funds responsibly. To achieve this, the project has outlined well-defined limits on how things will be operated in this sector.
According to rules released in Thailand, all service issuers should obtain a license permitting them to carry out their operations and strictly adhere to the country’s know-your-customer (KYC) and anti-money laundering (AML) regulations.
In addition, the sandbox has set aside rules that require foreign tourists in the country to undergo identity confirmation processes before taking the initiative to change their digital assets to Thailand’s currency.
Similarly, the SEC has also applied spending measures to foreign tourists. Based on this regulation, the regulators will monitor and manage their transactions. For example, the tourists will only be allowed to consume a maximum of ฿50,000, worth nearly USD 1,375 monthly. This spending limitation will apply to local shops like food stalls and markets.
On the other hand, for certified businesses like hotels and expensive restaurants, tourists’ monthly consumption limitation is raised to ฿500,000, which is approximately USD 13,750.
Since this project is being exercised for the first time, it will effectively last 18 months. This may, however, be extended after regulators examine its performance, public reaction, and safety reports.
Thailand’s sandbox project faces criticism from individuals
Concerning the sandbox project, the SEC and BOT have opened room for public feedback with a deadline of August 13 this year. The regulators have also called on the individuals involved in the industry, banks, and companies in tourism to weigh in on the situation.
This initiative aims to solidify the country’s position as the leader in the fintech space and make Thailand a region of new ideas.
With safeguarding measures and regulations in place, it is anticipated that this will create a conducive environment for crypto and traditional money to cooperate and attract proprietors of digital assets worldwide.
In the meantime, the project has faced criticism from several Phuket tourism sectors. Based on their argument, there is a shortage of education and communication on the project. This was not all, questions have been raised concerning which cryptocurrencies will be applied in this project, and the risk of abuse in the situation when monitoring systems are not strong enough.
Despite all this, the project is still viewed as a game-changer for the tourism sector. If successfully adopted, other countries will be eager to apply it in their tourism sector, becoming a global FinTech trend.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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