Thailand launches cryptocurrency conversion scheme for foreign tourists

What’s new? Thailand is launching a pilot program that will allow foreign tourists to convert cryptocurrency into Thai baht to pay for goods and services. The TouristDigiPay initiative will be presented at a press conference led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira. Also, there will be representatives from the Ministry of Finance, the Securities and Exchange Commission, the Anti-Money Laundering Office, and the Ministry of Tourism and Sports.

What are the conditions? Under the program, foreign tourists must open accounts with an SEC-regulated cryptocurrency company and a licensed electronic payment provider supervised by the Bank of Thailand. The scheme operates within a regulatory “sandbox” that provides oversight and prevents the direct use of cryptocurrencies as a means of payment.

Access to the service is only available to foreign tourists temporarily staying in Thailand. Participants must undergo Know Your Customer (KYC) and customer due diligence checks under Thai AML legislation. After that, tourists will be able to exchange cryptocurrency for baht and pay for purchases using QR codes.

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What else is known about the initiative? Naphongthawat Phothikit, senior director at the Bank of Thailand’s Payment Systems and Financial Technology Policy Department, said that the central bank has developed a “Tourist Wallet” for foreign tourists. It will allow visitors from countries that do not have cross-border payment agreements using QR codes to make payments using QR codes.

In the first phase, the system will operate as an electronic platform for converting cryptocurrency into baht, but in the future, there are plans to connect directly to foreign debit and credit cards. To combat money laundering, limits are in place: merchants with card acceptance terminals will receive a monthly spending limit of 500 000 baht per account, and for small merchants, the limit will be 50 000 baht.

In 2019, Thailand welcomed 28,1 million foreign tourists before tourism collapsed due to COVID-19. The government is implementing support measures aimed at restoring tourism and its share in the economy.