The initiative comes as Thailand’s tourism sector faces a notable downturn this year, driven largely by a decline in arrivals from China, The Nation reported.

Thailand, the second largest economy in Southeast Asia, recorded 20.1 million foreign arrivals from Jan. 1 to Aug. 10, generating 937.6 billion baht (US$28.8 billion) in revenue.

Under the new regulations, foreign tourists wishing to convert digital assets into the Thai baht for spending must open an account with a digital asset business and an e-money provider, both of which are regulated by the SEC and the Bank of Thailand (BOT) respectively.

The scheme will operate within a regulatory ‘sandbox’ to ensure proper oversight and risk management, particularly to prevent the direct use of digital assets as a means of payment. Only foreign tourists temporarily staying in Thailand will be eligible to use the service.

Participants must undergo stringent Know Your Customer (KYC) and customer due diligence (CDD) checks, in line with the Anti-Money Laundering Office (AMLO)’s criteria. The service will enable tourists to exchange their digital assets for the baht and make electronic payments, such as through QR code scanning.

This service will facilitate QR code payments, particularly for tourists from countries without existing cross-border QR payment agreements. The Tourist Wallet will initially function as an e-money system for currency conversion, with future plans to link it directly to foreign debit and credit cards.

To mitigate the risk of financial crime, such as money laundering, transaction limits will be in place. For merchants with card terminals, the monthly spending limit will be 500,000 baht ($15,400) per account.

For small, general merchants, the limit will be 50,000 baht per month. Transactions will be prohibited at businesses deemed high-risk for money laundering under AMLO guidelines. Furthermore, tourists will only be able to withdraw money upon closing their accounts, and not as cash based on their top-up balance.