The SEC invites public input on a proposed regulatory sandbox aimed at facilitating the conversion of digital assets into Thai Baht, boosting foreign tourists’ spending capabilities while fostering innovation and driving tourism growth in Thailand.
The Securities and Exchange Commission (SEC) is seeking public comments on a regulatory sandbox to allow conversion of digital assets into Thai Baht for foreign tourists’ spending purposes. The initiative aims to promote the use of innovation and digital assets to boost the economy and tourism industry in Thailand. The sandbox would provide more options and convenience for foreign tourists who hold digital assets to exchange them for Thai Baht through licensed digital asset operators and use the converted Thai Baht to buy goods and services via e-money service providers.
The SEC recognizes the importance of leveraging financial innovation and digital assets to support Thailand’s economic growth and tourism. This sandbox aims to provide additional options and convenience for foreign tourists who hold digital assets when visiting and spending in Thailand. This initiative builds upon the existing ecosystem covering both the digital asset trading system and electronic money (e-money) system, while maintaining appropriate and adequate risk protection measures.
Under the sandbox pilot program, foreign tourists who wish to convert digital assets into Thai Baht and use the converted Thai Baht to pay for goods and services at merchants would be required to open an account and make transactions through digital asset business operators under the SEC’s supervision and e-money business operators under the Bank of Thailand’s (BOT) supervision. This includes appropriate control, supervision, and risk preventive measures through relevant regulatory agencies, without allowing digital assets to be used directly as a means of payment for goods and services at merchants.
Eligible participants in the sandbox are digital asset exchanges, digital asset brokers and digital asset dealers. Additionally, they all would have to apply for approval and be ready to operate under the sandbox framework, scope, and criteria. Once approved, the service period under the sandbox would not exceed 18 months. The SEC may consider an expiry extension to allow greater flexibility for conducting the testing operations.
Sandbox participants would be allowed to provide services exclusively to foreign tourists who travel to, and temporarily reside in, Thailand. They must also conduct Know Your Customer/Customer Due Diligence (KYC/CDD) procedures according to the criteria of the Anti-Money Laundering Office (AMLO) and provide digital asset exchange services according to the type of license granted by the SEC. Additionally, they must establish connectivity with e-money operators regulated by the BOT. This connectivity would enable foreign tourists to use the converted Thai baht to purchase goods or services through electronic channels including QR code scanning.
Furthermore, Sandbox participants must comply with relevant criteria, such as collecting and evaluating user data, using blockchain forensics tool to identify illicit transactions, reporting information to the SEC, and preparing exit plans from the sandbox, etc.
Source : SEC public hearing on a digital asset regulatory sandbox to promote tourism industry
