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 received support from the CEO of Binance Thailand, who sees it as a positive step for the country’s competitiveness and its ability to attract tech-savvy visitors.

However, despite efforts by industry advocates and some political proponents to turn the Kingdom into a digital hub, the central bank continues to ban cryptocurrency payments in Thailand.

Is Thailand getting closer to cryptocurrencies?

The proposal “reflects not only the momentum of global cryptocurrency adoption, but also demonstrates that leaders at the highest level are embracing these transformative technologies,” said Nirun Fuwattananukul, CEO of Gulf Binance, said the Bangkok Post before adding:

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

He went on to state that, given the country’s dependence on tourism and foreign inflows, “the integration of 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 monetary system, unlike countries like the United States and Japan, which have already implemented Bitcoin payments.

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

The central bank needs to thoroughly study risks, particularly those related to monetary flow and economic stability, and regulatory frameworks need to be updated through collaboration between the BoT and the SEC, which could take time.

According to the report, it is also necessary to establish consumer protection and anti-money laundering measures.

Restricted foreign access

The proposal suggests starting with a controlled testing environment in Phuket to monitor and evaluate the implications before considering any nationwide adoption.

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

Additionally, Thailand’s digital asset market is undergoing a transition from a retail focus to a more institutional focus, Fuwattananukul said in October.

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