Thailand to allow crypto spending for tourists, eyes regulatory reform

Thailand is modernizing its financial system to incorporate digital assets, starting with a pilot program allowing tourists to spend cryptocurrency via credit card-linked platforms. This initiative, announced by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, will enable tourists to link their crypto holdings to credit cards for seamless local purchases. Merchants will receive Thai baht, unaware of the underlying crypto transaction. The program, currently under review by the Ministry of Finance and the Bank of Thailand, aims to leverage existing infrastructure, minimizing risks to the domestic currency.

This move is part of a broader plan to reform Thailand’s financial laws. The government seeks to unify the legal treatment of traditional capital markets and digital assets, currently governed separately. Outdated restrictions on institutional investors are also under review, potentially opening more funds to equities and private sector assets. Further reforms include regulating high-frequency trading and expanding the Thai Securities and Exchange Commission’s enforcement powers. A draft law is being prepared to allow the SEC to directly prosecute major cases.

Minister Pichai strongly supports digital assets, advocating for clear regulations that balance innovation with financial stability. The government plans to issue “G-Tokens,” blockchain-based tokens allowing retail investors to purchase government bonds in fractional units, aiming to enhance returns for savers and boost the international appeal of Thai sovereign debt. This initiative follows the earlier announcement of $150 million in digital investment tokens for retail investors to buy government bonds and the Thai SEC’s approval of USDT and USDC for trading on regulated exchanges.

Thailand’s proactive approach to integrating crypto into its economy includes recent regulatory actions against foreign peer-to-peer crypto services, demonstrating a commitment to both embracing innovation and safeguarding its financial system. The country is strategically positioning itself as a leader in Southeast Asia’s evolving digital asset landscape.