A digital illustration shows a foreign couple venturing out among Thai temples. The project allows digital assets to be converted into baht.

Tourists arriving in Thailand will soon be able to convert their digital assets into baht to spend during trips under the Tourist DigiPay initiative as authorities look to capitalise on the peak season.

Under an initiative jointly developed by the Securities and Exchange Commission (SEC), the Bank of Thailand and the Anti-Money Laundering Office (Amlo), a regulated digital payment system allows foreign visitors to convert digital assets into baht to spend during their time here.

Tourist DigiPay is expected to support the tourism sector while maintaining strict anti-money laundering (AML) safeguards.

Tourists can top up their wallet to 500,000 baht a month per account, according to the SEC’s Digital Asset Policy Department.

“The project will provide an alternative payment option for foreign travellers and promotes wider use of digital innovation in the Thai economy,” the regulator said, adding the rollout includes robust risk management and AML controls to prevent misuse of cryptocurrencies and grey digital assets.

Nirun Fuwattananukul, chief executive of Binance TH by Gulf Binance, said the project is a forward-looking initiative that positions Thailand as an innovative country embracing new technologies such as digital assets.

While many countries are beginning to allow crypto payments, Thailand is taking a pragmatic approach through a regulatory sandbox, converting crypto into baht for use in a controlled and compliant way, said Mr Nirun.

“As one of the world’s top tourist destinations with advanced digital infrastructure, Thailand is the perfect testbed for this project. Only by experimenting in real-world settings can we truly understand the risks and learn how to mitigate them effectively,” he told the Bangkok Post.

The SEC, central bank and Amlo have taken measures to safeguard the public from money laundering, said Mr Nirun.

THE PROCESS

The process begins with know your customer and customer due diligence procedures as mandatory steps for all licensed digital asset and e-money service providers.

These involve verifying customers’ identities and the purposes of transactions through documentation and biometric data to ensure compliance with high-risk standards set by Amlo.

Once verified, tourists can open two linked wallets – a digital asset wallet and a tourist e-money wallet – allowing seamless conversion of crypto into baht for spending.

Digital asset operators must use blockchain forensic tools to trace and analyse transaction histories, identify suspicious wallets, and detect potential links to illegal activities or money laundering, the SEC said in a statement.

Payments through PromptPay QR codes are capped at 500,000 baht a month per account for merchant QR codes, and 50,000 baht a month per account for small vendors using personal QR codes.

“These caps are consistent with the average spending pattern of international tourists, which is roughly 5,000 baht a day, and will ensure funds are used only for legitimate tourism-related activities,” noted the regulator.

Tourist DigiPay cannot be used at high-risk businesses, such as gold or jewellery shops, amulet and antique dealers, casinos, or entertainment venues, all of which are commonly monitored for potential money laundering, said the SEC.

If a balance remains in a tourist wallet when visitors leave Thailand, they must convert the unused funds back into digital assets via the same licensed provider used upon entry. The refunded amount must not exceed the initial digital assets exchanged into baht.

The pilot programme is slated to run for 18 months.

“The scheme will support and strengthen the competitiveness of local small businesses and merchants, while fostering broader adoption of regulated digital finance by ensuring the platform does not become a channel for illicit money flows,” said the SEC.