# Thailand to Test Cryptocurrency Sandbox in Phuket by October 2025

The Thai government plans to introduce a cryptocurrency sandbox in Phuket by October 2025 to evaluate the efficacy of digital asset payment systems and establish future financial policy directions. The sandbox will experiment with crypto payments, but coordination among regulatory authorities remains a key challenge, with privately issued stablecoins emerging as the most viable alternative.

The results of the sandbox will shape Thailand’s financial innovation strategy and enhance its role and position in the global digital asset market.

# Introduction

The competition for dominance in Asia’s cryptocurrency market is intensifying. Singapore and Hong Kong are leading the way with their friendly regulatory environments, and Thailand, once hailed as a rising star, has shown high adoption rates. However, Thailand’s cryptocurrency market has seen a decline over the past two years, raising concerns about its competitiveness.

Meanwhile, the potential return of Donald Trump to the U.S. presidency could significantly impact market dynamics. Should the U.S. adopt more crypto-friendly regulations, the competition for dominance among Asian countries could escalate further. In response, the Thai government is planning to implement a cryptocurrency sandbox in Phuket, a prominent tourist destination, by October 2025. This report analyzes the main aspects and implications of the proposed sandbox program.

# Phuket Sandbox: Thailand’s Cryptocurrency Experiment

## Background

To secure competitiveness in the evolving global cryptocurrency market, the Thai government plans to launch the Phuket cryptocurrency sandbox by October 2025. This project aims to validate the effectiveness of digital asset payment systems. Through this sandbox, the government intends to assess efficient tax collection, the impact on monetary policy, and explore ways to utilize digital assets.

The initiative began with a proposal from former Prime Minister Thaksin Shinawatra, who, at a Pheu Thai Party seminar in December 2024, emphasized the need for cryptocurrency sandboxes in key tourist cities like Phuket and Hua Hin. The Ministry of Finance began an active review, and in January 2025, the Deputy Prime Minister and Minister of Finance announced that the pilot crypto payment project in Phuket would proceed within the existing legal framework.

## Target Assets

Former Prime Minister Thaksin and the Finance Minister mentioned the potential for cryptocurrencies like Bitcoin, but practical limitations exist. Cryptocurrencies are categorized as digital assets under the supervision of the Securities and Exchange Commission (SEC), whereas payment systems fall under the central bank’s jurisdiction, necessitating coordination among various regulatory bodies.

The Thai central bank does not recognize cryptocurrencies as a means of payment due to their high price volatility and limitations in processing large volumes of transactions. Additionally, the central bank governor maintains that integrated payment systems like ‘PromptPay’ are more efficient, making the agreement on crypto-based payments challenging.

Government-issued stablecoins are also being considered. The Ministry of Finance plans to issue government bond-based stablecoins worth 10 billion baht by October 2025 and establish secondary trading platforms to involve financial institutions and retail investors. However, significant time is expected for system development and implementation, potentially complicating its introduction.

Privately issued stablecoins appear to be the most practical alternative. ‘Bitkub,’ Thailand’s leading virtual asset exchange, participates in the central bank’s programmable payment sandbox and operates a baht-pegged stablecoin on its ‘Bitkub Chain.’ With over 80% market share, Bitkub offers high accessibility and already has the necessary infrastructure, such as KYC systems and stablecoin off-ramps, facilitating quick implementation.

## Target Location

The Thai government has chosen Phuket as the testbed for the cryptocurrency sandbox. With over 10 million annual visitors, Phuket’s thriving tourism industry and its popularity among tech-savvy digital nomads make it an ideal environment to experiment with digital asset payment models. Through this project, the government aims to evaluate the linkage between digital assets and the real economy, positioning Phuket as a future tourism city where innovation and leisure coexist.

As a tourism powerhouse, Thailand relies heavily on its tourism industry for GDP and has been implementing policies to attract more foreign visitors. Expanding visa-free entries from 57 to 93 countries last year is part of this strategy. However, accurately tracking economic activities of foreigners and digital nomads remains a challenge. Monitoring and taxing foreign income and managing funds during property rentals and sales by long-term foreign residents are particularly difficult.

Thus, the Thai government is considering using traceable digital assets to capture previously opaque fund flows and improve tax and regulatory systems. This sandbox will test the practicality of such a model.

# Future Prospects After Phuket Cryptocurrency Sandbox

## Potential for Supporting Various Cryptocurrency Payments

Privately issued stablecoins are the most realistic payment alternative within the Phuket sandbox. However, should the project be deemed successful, the range of crypto payments could extend to more diverse digital assets.

Thailand has experience building a payment system that instantaneously converts digital assets to fiat currency in collaboration with exchanges in 2022. Thus, if officially adopted, cryptocurrency payments could be swiftly applied and expanded using existing infrastructure.

Additionally, in November 2024, Siam Commercial Bank (SCB) led a crypto payment sandbox during the DevCon convention, where merchants around the event enabled instant fiat conversion of crypto payments. The Rubie Wallet project by SCB 10X was a notable implementation example.

Given the ongoing expansion of digital asset payment experiments in Thailand, the scheduled Phuket sandbox experiment in October holds potential as a significant milestone for broader crypto payment adoption. Monitoring subsequent government policies and market responses will be crucial.

## Digital Payment Innovation and Policy Implications

The Phuket cryptocurrency sandbox extends beyond technical experimentation, aiming to strengthen the competitiveness of the tourism industry through payment innovation using digital assets. This project also addresses major payment inconveniences faced by foreign tourists, such as difficulty tracking expenditure, cumbersome currency exchange processes, and exchange rate volatility risks. Utilizing Web3-based payment systems can offer a transparent and convenient payment method, potentially alleviating these issues.

The Thai government will also closely analyze digital asset-based transaction and consumption patterns through this sandbox, providing an opportunity to formulate more sophisticated monetary policies. Furthermore, this experiment will be crucial for evaluating the practical implementation of digital payment models, paving the way for a systematic regulatory framework and the proliferation of Web3 technologies.

# Conclusion

The Phuket cryptocurrency sandbox is a strategic experiment by Thailand to gain a competitive edge in the digital asset sector and lead financial innovation in the ASEAN region. As the U.S. pushes policies to use dollar-backed stablecoins as a key instrument for international payments, Thailand must leverage digital assets to bolster financial competitiveness and adapt to the evolving global financial environment. This experiment offers a valuable opportunity to assess Thailand’s capacity to operate its financial system efficiently and respond proactively using digital assets.

Considering Thailand’s policy orientation, the continued promotion of crypto-friendly policies appears likely. Current Prime Minister Paetongtarn Shinawatra, youngest daughter of former Prime Minister Thaksin Shinawatra, shares a pro-crypto stance that aligns with expanding financial experiments involving digital assets. The current sandbox can be seen as an extension of this policy direction.

While the expansion of this experiment from Phuket to Thailand’s broader economy remains uncertain, it is essential to monitor how Thailand positions itself within the evolving international financial order centered around digital assets. The success of this project will depend on cooperation between companies and policymakers, a clear regulatory environment, and effective execution. Nevertheless, the experiment’s results will likely clarify the potential and policy direction for utilizing digital assets.