Thailand is laying the groundwork to allow international tourists to spend cryptocurrency via credit card-linked platforms, marking a notable shift in its approach to digital assets and financial modernization. The proposal, still under regulatory review, comes alongside broader legislative efforts aimed at aligning the country’s capital markets with the digital economy.
On May 26, Deputy Prime Minister and Finance Minister Pichai Chunhavajira unveiled the initiative at an investment seminar in Bangkok. The announcement signals a dual strategy: enabling short-term crypto integration into the tourism sector while pursuing long-term regulatory reform of both digital and traditional financial instruments.
Under the proposed model, tourists visiting Thailand will be able to spend cryptocurrency by linking their holdings to credit cards. The system will process payments in Thai baht on the merchant side, insulating local vendors from crypto volatility and regulatory exposure. Merchants will not need to know that the transaction originated in digital currency, creating a seamless fiat-like experience for both parties.
The implementation, led jointly by the Ministry of Finance and the Bank of Thailand, is contingent on the completion of infrastructure checks and regulatory readiness. While no launch timeline has been confirmed, the government has indicated a willingness to act quickly once the technical and legal frameworks are finalized.
“This approach can be immediately adapted for Thailand, provided the supporting systems are in place,” said Pichai, who also emphasized that the model avoids the direct use of Thai baht in the transaction from the consumer’s side - a move intended to minimize currency risk and preserve domestic monetary control.
The strategy is reminiscent of other crypto payment models that route transactions through intermediaries to deliver fiat at the point of sale. Such models have been deployed in countries like the UAE, Japan, and parts of Europe, often using stablecoin-backed wallets or centralized conversion tools.
Regulatory Overhaul: Bridging Capital and Digital Markets
Beyond tourism-focused crypto use, the Thai government is undertaking a broader review of its financial laws to bring greater coherence to its fragmented regulatory environment. Currently, traditional capital markets and digital asset activities are governed under separate frameworks, which has created legal ambiguities and compliance challenges for financial institutions and tech startups alike.
According to Pichai, a major goal is to harmonize the regulation of securities and digital tokens under a unified legislative framework. The government is also considering lifting outdated restrictions that prevent large institutional investors - including life insurers and pension funds - from allocating capital beyond low-yield government bonds. These institutional portfolios, valued in the hundreds of billions of baht, could be permitted to invest in equities and private-sector instruments under the proposed reforms.
The Ministry of Finance is further evaluating changes to the rules surrounding treasury stock - shares a company keeps in its own treasury after repurchasing - and is assessing how to better regulate high-frequency trading (HFT). These reforms are being positioned as part of a broader strategy to make Thailand’s financial markets more dynamic and equitable.
Strengthening Enforcement and Market Oversight
A draft law currently in progress would expand the enforcement powers of the Thai Securities and Exchange Commission (SEC), allowing it to escalate major violations directly to public prosecutors without first passing through intermediary agencies. This measure is intended to streamline regulatory action and enhance investor protection, especially in the fast-evolving digital asset space where legal grey areas can delay enforcement.
Market manipulation, front-running, and excessive trading volumes from algorithmic trading systems have also come under scrutiny in recent years. While Thailand’s equity and crypto markets have grown, particularly among younger investors and retail traders, oversight mechanisms have lagged behind. The proposed legal reforms aim to close these gaps by giving regulators the tools to act quickly and decisively.
State-Sponsored Digital Asset Initiatives
Pichai also addressed the role of state-sponsored digital asset initiatives, including a blockchain-based bond distribution system dubbed “G-Tokens.” The system is designed to allow fractional ownership of government bonds, targeting retail investors and improving the accessibility of sovereign debt instruments.
This project follows the Ministry of Finance’s May 13 announcement of a $150 million issuance of digital investment tokens - a pilot intended to diversify government financing channels and test the feasibility of tokenized public debt instruments. These moves form part of a broader effort to digitize the issuance and trading of financial products, reflecting a growing global interest in blockchain for capital markets infrastructure.
Thailand’s push toward tokenization also aligns with February’s announcement from the Thai SEC about a dedicated platform for trading tokenized securities - at least initially targeted at institutional participants. These moves suggest a phased strategy: begin with state-backed initiatives and high-trust environments, then gradually expand to more decentralized, open-market use cases.
Stablecoins Cleared for Exchange Listings
Earlier this year, Thailand made another regulatory adjustment that may pave the way for broader crypto adoption. In March, the Thai SEC approved Tether’s USDT and Circle’s USDC for use in cryptocurrency trading. These U.S. dollar-pegged stablecoins can now be listed on regulated Thai exchanges, granting traders and liquidity providers access to widely used digital dollar substitutes.
The approval is a practical recognition of stablecoins’ role in crypto markets - both as trading pairs and on/off-ramps. While regulators globally remain wary of stablecoins' systemic implications, Thailand’s move reflects a measured acceptance of their utility in a controlled exchange environment.
However, there are no current indications that the approved stablecoins will be used in the upcoming tourist payments system. That system appears more likely to rely on backend conversion infrastructure, possibly through licensed crypto-fintech intermediaries or bank-led custodial solutions that minimize volatility and compliance risks.
Tourism Meets Fintech
Thailand’s pivot toward crypto payments in the tourism sector reflects a broader trend in the region, where nations are experimenting with digital assets as part of post-COVID economic recovery and modernization strategies. Southeast Asia remains one of the most crypto-active regions in the world, with high mobile penetration and increasing access to digital wallets.
By enabling crypto spending for tourists, Thailand hopes to attract a new demographic of tech-savvy travelers while also experimenting with payment innovation in a tightly controlled sandbox. However, the success of the initiative will depend not only on backend infrastructure and regulatory clarity, but also on user experience, conversion fees, and merchant willingness - factors that have stymied similar efforts in other countries.
There are also monetary and geopolitical considerations. By allowing crypto spending through intermediated systems that avoid direct interaction with the baht, the government can test the waters without compromising capital controls or inviting short-term currency volatility. In this sense, Thailand’s crypto-tourism model represents a hybrid approach - neither fully open nor entirely restrictive - aligned with the country’s cautious but active stance on digital asset adoption.
Final thoughts
While Thailand’s embrace of crypto in tourism and its financial regulatory overhaul signal progressive intentions, the balancing act between fostering innovation and maintaining financial stability remains delicate. The proposed changes, from tourist payments to institutional investment reform, point toward a state-led, infrastructure-first approach to digital finance - a model that may appeal to other emerging markets looking to modernize without ceding control.
Still, the road ahead includes unresolved challenges: tax implications of crypto spending, cross-border compliance, regulatory licensing for intermediaries, and technical integration across financial infrastructure. As the pilot schemes roll out and legal reforms evolve, their success will depend on coordination between regulators, financial institutions, and global partners.
Thailand’s plans may not lead to immediate transformation, but they reflect a broader global recalibration in how governments approach crypto - not just as an asset class, but as a payment tool, infrastructure layer, and policy lever in a shifting financial landscape.