Binance Thailand Endorses Thaksin's Bitcoin Sandbox Proposal, Urges Caution from BoT

Binance's Thai subsidiary, Gulf Binance, has endorsed Prime Minister Thaksin Shinawatra's proposal for a Bitcoin sandbox pilot in Phuket.

Binance’s Thai Unit Backs Thaksin’s Bitcoin Sandbox Plan, Urges BoT Caution Thailand’s Gulf Binance has endorsed former Prime Minister Thaksin Shinawatra’s proposal for a Bitcoin sandbox pilot in Phuket, while urging caution and thorough evaluation from the Bank of Thailand (BoT).

A report by the Bangkok Post on Wednesday cited comments by Nirun Fuwattananukul, CEO of Gulf Binance, who described Thaksin’s proposal as a major step for the country’s digital economy.

He highlighted how the initiative aligns with global crypto adoption trends and Thailand’s economic strengths.

“The initiative not only reflects the momentum of crypto adoption but also demonstrates that leaders at the highest level are embracing these transformative technologies,” Nirun told the broadsheet.

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

Leveraging Phuket’s Strategic Appeal

Phuket, being a global tourism hub, could serve as an ideal testbed for integrating Bitcoin payments into Thailand’s economy, Nirun said.

By doing so, the country could attract tech-savvy tourists and investors, bolstering its competitiveness in the global market.

“Given our reliance on tourism and foreign inflows, a controlled integration of cryptocurrencies could align perfectly with our strategic goals,” he added.

Highlighting the challenges posed by cryptocurrencies, which include volatility and an evolving asset class, Nirun praised the proposed sandbox approach for mitigating these risks by allowing controlled experimentation.

“A successful pilot project in Phuket could position Thailand as a regional leader in digital innovation,” he said.

“It could enhance our global reputation as a progressive nation ready to embrace the future of finance while maintaining a responsible and regulated approach.”

Regulatory Hurdles Ahead

Currently, the BoT prohibits the use of Bitcoin and other cryptocurrencies for payments. For the initiative to move forward, a collaborative framework involving the BoT and the local Securities and Exchange Commission is required.

Key areas regulators must address include currency controls, financial safeguards, and policy coordination.

Nirun emphasized that Thailand must learn from other countries like the US and Japan, tailoring solutions to fit its unique economic and regulatory context.

He added that any rollout should be carefully managed to avoid potential disruptions to Thailand’s financial system.