Tourists in Thailand May Soon Spend Crypto with Ease

Thailand is moving toward allowing tourists to spend cryptocurrency via credit card-linked platforms, marking a significant step in its broader effort to modernise the financial system and integrate digital assets.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced this initiative during a Bangkok investment seminar on 26 May.

While some countries already permit crypto payments through credit card-linked services, Thailand has yet to adopt this approach.

The government is now exploring regulated frameworks that would enable digital assets to connect with select financial services.

Currently under review by the Ministry of Finance and the Bank of Thailand, the plan would allow tourists to link their crypto holdings to credit cards for seamless local purchases.

Merchants would continue to receive payments in Thai baht, often unaware that cryptocurrency was the underlying source.

This pilot programme is set to launch once necessary infrastructure and regulatory safeguards are established.

Pichai emphasized that the model circumvents direct use of the Thai baht in transactions, minimising risks to the domestic currency:

“This approach can be immediately adapted for Thailand, provided the supporting systems are in place.”

The goal is to simplify payment processes for visitors while maintaining stability for vendors, who will receive funds in the local currency as usual.

Discussions with the Bank of Thailand are ongoing, with a pilot phase anticipated before broader rollout.

Government Aims to Link Capital Markets with Crypto via Law Amendments

Thailand is preparing a comprehensive overhaul of its financial laws to bridge the gap between traditional capital markets and the burgeoning digital asset sector.

Pichai announced plans to amend existing legislation—currently split between the Securities and Exchange Act and the Emergency Decree on Digital Asset Businesses—to create a unified legal framework.

This reform aims to provide investors with greater flexibility, enabling smoother fund transfers between the conventional capital market and digital assets.

Pichai emphasized the need to align regulatory treatment of these two markets, which today operate independently, to foster innovation and investor confidence.

Despite global market uncertainties, he praised the relative stability of the Thai stock market, noting that it has outperformed many regional peers amid shifting US policies.

He attributed this resilience to the enduring attractiveness of Thai equities.

Highlighting the role of the Stock Exchange of Thailand (SET) in promoting long-term investments, Pichai stressed the importance of easing restrictions on treasury stocks to encourage corporate participation.

The government also plans to revisit Thailand’s Securities and Exchange Commission (SEC) regulations that currently limit life insurance companies and large funds to minimal stock market exposure, often confining them to government bonds.

Proposed reforms could broaden these investment scopes to include equities and private sector assets.

On enforcement, a draft law is underway to strengthen the SEC’s authority, potentially granting it power to file major market offense cases directly with prosecutors.

Discussions are ongoing about whether the SEC should gain independent investigative powers or continue collaborating with police.

Additionally, reforms aim to modernise rules around high-frequency trading and promote fairer market practices.

New Regulatory Framework Established for G-Token

Thailand’s SEC has introduced a regulatory framework for the government-backed digital token, known as the G-Token.

Designed primarily as an investment and savings vehicle, the framework explicitly prohibits the token’s use for payment purposes.

Pornanong Budsaratrogoon, the Commissioner and Secretary of the Securities and Exchange Commission, Thailand, stated:

“We will implement Smart Contracts that prohibit inter-transfers and transfers of tokens out of exchanges to prevent their use as a payment channel, a concern raised by the Bank of Thailand. Current regulations already prohibit digital asset businesses from using assets for normal purchases.”

Approved by the Cabinet on 13 May, the initiative aims to boost financial inclusion and harness digital innovation within Thailand’s capital markets.

Unlike traditional securities, the G-Token is not classified as a financial instrument, allowing the Ministry of Finance to issue it without SEC approval.

On the same day, the Ministry announced plans to launch $150 million worth of digital investment tokens, enabling retail investors to purchase government bonds in fractional units.

This follows the SEC’s earlier announcement in February about a tokenised securities trading platform targeted at institutional investors.

Pichai emphasized the importance of clear regulations that encourage innovation while safeguarding financial stability.

He highlighted the G-Token’s potential to enhance returns for savers and elevate Thai sovereign debt on the global stage.

Budsaratragoon underscored the regulator’s commitment to fostering diverse investment options and leveraging technology to improve market efficiency.

She stressed that the SEC’s framework aims to create a fair, competitive environment with strong investor protections.

On 26 May, the SEC launched a 15-day public consultation on the draft framework, which covers four critical areas: the G-Token’s defining features, issuance procedures, trading services, and the structure of the secondary market.

This comprehensive approach is designed to support future government G-Token issuances and broader digital asset adoption.