Binance Partners with Gulf Energy to Establish Cryptocurrency Exchange in Thailand

Binance Enters Thai Market Through Partnership With Gulf Energy

The Binance TH platform has been made accessible to qualified users starting January 16.

A specialized trading pair order book for the Thai currency has been established by the exchange, widening the trading possibilities for users. It is worth noting that the platform ensures a smooth integration with the local banking systems in Thailand, which simplifies the process of depositing and withdrawing in the national currency, thereby enhancing the overall trading experience.

Post-Authorization Expansion by the SEC

Two months post receiving the green light from Thailand’s SEC, Binance has broadened its services to the public. Initially adopting an invitation-only mode, the exchange has scaled to cater to a wider audience, preparing for a surge in user interaction come 2024.

Binance’s expansion into the Thai cryptocurrency scene was publicly announced in May 2023, and within the same month, Binance secured licenses as a digital asset exchange and broker from Thailand’s Ministry of Finance, as reported by Crypto News. The operational arm of the exchange, Gulf Binance, is a collaboration between Binance Capital Management and Gulf Innova, a subsidiary under the Thai energy titan Gulf Energy.

Thailand’s Evolving Cryptocurrency Regulations

The partnership between Binance and Gulf Energy is indicative of the evolving perspective of Thai regulations on digital currencies. Gulf Energy, headed by the Thai billionaire Sarath Ratanavadi, is a major entity in the distribution of natural gas and invests in varied sectors that include renewable energy, infrastructure, and digital technology.

In the competitive Thai cryptocurrency exchange industry, largely dominated by Bitkub, Binance’s entry provides a notable option for traders. Bitkub, which is headquartered in Bangkok, holds an approximate 77% market dominance, with a reported daily trading volume close to $30 million. Competing exchanges like Upbit, Bitazza, and Zipmex are also part of the market, with Zipmex having faced regulatory issues that led to a trading interruption in November.

Nirun Fuwattananukul, CEO of Gulf Binance, highlighted the year-long cooperation with Thai regulators and the extensive groundwork leading up to the joint venture. Sharing the vision for fostering opportunities within the local market, Binance CEO Richard Teng’s ambitions were cited by Nikkei.

Despite cryptocurrencies being popular in Thailand, the past government had implemented restrictions in March 2022 which barred the usage of digital currencies for payment purposes. However, the present administration has showcased a more encouraging stance as evidenced by its intention to impose taxes on overseas earnings from stock and cryptocurrency trades starting January 2024, marking a notable transition in the legislative landscape.

Photo: Kanchanara/Unsplash

TokenPost | [email protected]

© TokenPost. All Rights Reserved.