Binance, Gulf Energy Partnership Launch Thailand Crypto Exchange
Binance TH has officially opened its doors to all eligible users as of January 16.
The exchange has introduced a dedicated order book for Thai baht trading pairs, providing users with enhanced trading options. Notably, the platform offers seamless integration with Thailand’s banking systems, streamlining the process of local currency deposits and withdrawals for a more user-friendly experience.
Expansion Follows SEC Authorization
This happened two months after Binance obtained authorization from Thailand’s SEC to start operations. Initially operating on an invite-only basis, the platform has expanded its accessibility to the general public, setting the stage for increased user engagement in 2024.
According to Crypto News, Binance’s foray into the Thai crypto market was first disclosed in May 2023, with the company securing a digital asset exchange and brokerage operator license from Thailand’s Ministry of Finance in the same month. Gulf Binance, the operating entity behind the exchange, is a joint venture combining the expertise of Binance Capital Management and Gulf Innova, a Thai energy conglomerate Gulf Energy subsidiary.
Changing Regulatory Landscape in Thailand
The collaboration between Binance and Gulf Energy holds particular significance, signaling a shifting regulatory stance on cryptocurrencies in Thailand. Under the leadership of Thai billionaire Sarath Ratanavadi, Gulf Energy is a crucial player in Thailand’s natural gas distribution sector, with diverse investments spanning renewable energy, infrastructure development, and digital ventures.
In the Thai cryptocurrency exchange market, currently dominated by Bitkub, this move by Binance presents a formidable alternative. Bitkub, based in Bangkok, commands approximately 77% of the market share, with a daily trading volume of around $30 million. Other players in the market include Upbit, Bitazza, and Zipmex, although the latter had to halt trading in November due to regulatory challenges.
Nirun Fuwattananukul, CEO of Gulf Binance, emphasized the extensive collaboration with Thai regulators over the past year, underscoring the meticulous planning that preceded the venture. According to Nikkei, Binance CEO Richard Teng expressed his vision of creating new opportunities for the local community.
Despite the popularity of crypto trading in Thailand, the previous government imposed restrictions on using digital assets for payments in March 2022. The current government, however, has signaled a more progressive approach, evident in its plans to tax overseas earnings from stock and cryptocurrency trading starting January 2024, indicating a dynamic shift in the regulatory landscape.
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