Binance backs Bitcoin payment pilot proposal in Thailand

Thailand is considering a possible Bitcoin pilot project, proposed by former Prime Minister Thaksin Shinawatra, to be tested in Phuket as a tourism-focused sandbox.

The proposal has been supported by the CEO of Binance Thailand, who sees it as a positive step for the country’s competitiveness and ability to attract tech-savvy visitors.

However, despite efforts by industry advocates and some political advocates to turn the Kingdom into a digital hub, crypto payments remain banned in Thailand by the central bank.

Is Thailand Warming Up To Crypto?

The proposal “reflects not only the momentum of global crypto adoption, but also shows that leaders at the highest level are embracing these transformative technologies,” Nirun Fuwattananukul, chief executive of Gulf Binance, told the Bangkok Post earlier to add:

“As more countries adopt digital assets and cryptocurrencies, Thailand should not be left behind.”

He went on to say that given the country’s reliance on tourism and foreign inflows, “integrating cryptocurrencies into Phuket’s economy could align well with Thailand’s strategic strengths, potentially attracting tech-savvy visitors and investors.”

However, there is currently a division of regulatory oversight in Thailand, as payment systems are under the jurisdiction of the central bank, while digital assets are regulated by the Securities and Exchange Commission.

Thailand also operates under a restricted currency system, unlike countries such as the United States and Japan, which have already implemented Bitcoin payments.

Before implementation, several key challenges must be addressed and the Bank of Thailand, which has been vehemently anti-crypto in the past, will have ultimate oversight.

The central bank needs to thoroughly study risks, especially in terms of money flow and economic stability, and regulatory frameworks need to be updated through collaboration between the BoT and the SEC, which could take time.

Consumer protection and anti-money laundering measures should also be put in place, according to the report.

Foreign access restricted

The proposal suggests starting with a controlled sandbox environment in Phuket to monitor and assess the implications before considering any national adoption.

However, the wheels of bureaucracy turn slowly in Thailand. In addition, many local payment systems and platforms, such as PayPal and Binance Thailand, are not available to foreigners visiting or residing in the kingdom.

Also, Thailand’s digital asset market is shifting from retail to a more institutional approach, Fuwattananukul said in October.

At the time, the Thai securities regulator proposed rules that would allow institutional-grade private and mutual funds to invest in crypto products such as US spot crypto ETFs.

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