Thailand’s crypto ambitions face hurdles as Phuket payment pilot emerges

Thailand’s Finance Minister Pichai Chunhavajira has made some positive comments about the wider adoption of digital asset payments in the kingdom, but several hurdles remain.

Asked on January 8 why Thailand should not accept cryptocurrencies, which are being traded around the world in high demand, Mr Pichai replied:

“With growing demand and ongoing geopolitical issues around the world, people are increasingly looking for alternatives to mainstream currencies,” he said.

Thailand To Embrace Crypto?

However, “Thailand is not fully ready for digital currency at this time,” he said, adding that the country is “trying to create a platform to identify potential users and establish a market where they can exchange and participate.”

He suggested allowing tourists to use local exchanges to make property purchases in Thailand, which is currently not possible.

“For example, if tourists come to Thailand, they could register their coins on a local platform that ensures verification or enables know-your-customer protocols. When making purchases, they could pay with coins through an exchange house of your choice”.

“Buyers and sellers would not know what kind of money they are getting, but these currencies would be transferred to the app and could then be converted into baht through the clearinghouses,” he added.

Mr Pichai also confirmed that a crypto payments pilot would be launched in a controlled sandbox environment on the resort island of Phuket later this year. He emphasized that the experiment would be carried out within the existing legal frameworks.

The barriers remain

However, there are some barriers as Thailand’s central bank remains vehemently against decentralized digital assets, having banned crypto payments in 2022.

In addition, foreigners visiting or residing in the country cannot access local payment platforms or crypto exchanges such as Binance Thailand because they cannot register without a citizen ID card.

In addition, the Thai government is currently in the process of implementing sweeping tax reforms that will affect all money coming into the country from abroad, potentially making foreign investment more difficult.

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

The Thai SEC then proposed rules that would allow institutional-grade private and mutual funds to invest in crypto products such as US local crypto ETFs, but with limits on retail access.

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