Thailand rolls out pilot program for tourists to convert crypto into baht for spending

Thailand has rolled out a pilot program allowing foreign visitors to convert crypto assets into Thai baht for everyday spending.

In a statement released Monday, Deputy Prime Minister and Finance Minister Pichai Chunhavajira said that the new initiative, called "TouristDigiPay," will run for an initial 18 months under a regulatory sandbox overseen by the Ministry of Finance, the Securities and Exchange Commission, the Anti-Money Laundering Office, and the Ministry of Tourism and Sports.

The TouristDigiPay project enables tourists to exchange crypto assets for local currency through regulated platforms, which can then be used at merchants across the country, according to the translated statement. The SEC concluded a public consultation on Aug. 13 on the use of crypto assets to support tourism growth, local news outlet The Nation reported.

Officials said the project reflects changes in travel behavior, as tourists increasingly rely on electronic payments and show growing interest in digital assets. 

However, the officials noted that the project is not intended to promote crypto assets as a direct means of payment. Participants will be required to comply with strict anti-money laundering and customer verification rules under Thai law, including know-your-customer requirements, the statement said.

Thailand is one of the earliest countries to establish clear legal and tax frameworks for crypto assets. Last month, the Cabinet approved a Finance Ministry proposal to exempt crypto transactions from capital gains tax, effective until Dec. 31, 2029.