Thailand is set to take a bold step with the launch of a crypto sandbox in Phuket this October.
According to a 19 January 2025 local media report, this initiative represents a strategic move to boost the country’s standing in the global crypto market while also reaping economic benefits.
The choice of Phuket as the sandbox’s hub is no coincidence. The initiative aims to position the island as a hotspot for tech-savvy tourists. It encourages visitors to spend digital assets locally, stimulating the local economy and enhancing Thailand’s image as a forward-thinking destination for innovation and leisure
The sandbox accelerates Thailand’s growing crypto industry by bringing regulators and private players together to collaborate and innovate. It primarily focuses on stablecoins backed by assets like gold or government bonds, which experts consider less volatile. However, high-risk digital assets will remain excluded from the sandbox’s scope, ensuring a cautious yet progressive approach to experimentation.
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Former Thai Prime Minister Thaksin Shinawatra revealed that a cryptocurrency sandbox is set to be launched in Phuket by October 2025.
He also mentioned that Thailand will not accept high-risk cryptocurrencies such as meme coins like $TRUMP and $MELANIA. pic.twitter.com/xhuM6523hX
— CryptoWeekly (@WeeklyCrypto) January 21, 2025
Race To dominate Asia-Pacific Digital-Asset Market Heats Up
The race to dominate the Asia-Pacific digital-asset market is heating up, with Singapore and Hong Kong leading the charge through supportive regulations. Meanwhile, global crypto players like Binance Holdings Ltd. have identified Thailand as a key growth market as the country begins easing restrictions on digital assets.
“Like it or not, we have to move along with more adoption of cryptocurrencies worldwide,” said Secretary-General Pornanong Budsaratragoon during an interview on Tuesday. “We have to adapt and ensure that our investors have more options in crypto assets with proper protection.”
Thailand’s shift toward crypto-friendly policies marks a dramatic pivot, especially following its 2022 ban on crypto payments over financial security concerns. The government has since rolled out measures to encourage trading and investment, signaling a more balanced and strategic stance on the growing industry.
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Industry Buzz and Future Prospects
Crypto trading activity in Thailand is gaining momentum, mirroring a global resurgence that saw Bitcoin soar to a record high of $108,315 in December. However, the market is still recovering from the fallout of multiple crypto bankruptcies in 2022, which left the sector shaken.
As of 30 November 2024, Thailand had approximately 270,000 active crypto trading accounts, according to the SEC, reflecting a steady but cautious return of investor interest.
Thailand’s proposed crypto sandbox has sparked excitement among industry leaders who view it as a well-regulated environment for innovation. Among its advocates is Thaksin Shinawatra, the de facto leader of the ruling Pheu Thai Party, who has expressed strong support for crypto adoption.
The sandbox initiative also hints at a potential revisiting of the country’s previous bans on crypto payments. Thailand aims to establish itself as a major player in the digital-asset space, even as it introduces stricter compliance measures to mitigate risks.
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