Binance Secures Regulatory Approval in Thailand
- Thailand is fast growing into one of the crypto hubs of Southeast Asia.
- Binance said the partnership with Gulf Innova was inspired by the growth of digital activities in Thailand.
Crypto exchange Binance announced that its joint venture with Gulf Innova has secured regulatory approval in Thailand after being granted a digital asset operator license from the Ministry of Finance of Thailand. The approval allows for the launch of a crypto exchange and broker.
Regulators have often accused Binance of operating without the necessary approval. However, the new venture, Gulf Binance, will be regulatory-compliant since it is approved and overseen by Thailand’s Securities and Exchange Commission (SEC).
Binance revealed that Gulf Binance will launch a new digital trading asset exchange in Thailand in Q4 2023, with more details to be shared later. Gulf Binance will combine Binance’s strength as the leading crypto exchange globally with Gulf’s experience and familiarity with the Thai crypto market.
Gulf Energy Development PCL, led by billionaire Sarath Ratanavadi, owns Gulf Innova. Gulf Energy and Binance reportedly discussed launching a local exchange for more than a year. However, both companies reached an agreement earlier this year.
Reacting to their partnership, Binance’s head of Asia, Europe, and MENA, Richard Teng, said in a statement,
We are grateful and honored to be granted digital asset operator licenses for Gulf Binance in Thailand—a country with a thriving crypto space that has demonstrated strong commitment in embracing blockchain technology. By harnessing Binance’s expertise together with Gulf’s established local presence and network, Gulf Binance aims to showcase the full potential of blockchain technology to meet the needs of Thai users.
A Binance spokesperson added that “Binance’s decision to partner with Gulf for this joint venture stems from the company’s extensive experience and expertise in the digital asset trading business.” Binance said it was also impressed by Gulf’s growing influence and presence in Asia. Gulf is one of Thailand’s most prominent and fastest-growing corporations, with an extensive network covering telecommunications, digital businesses, and energy production.
As per the terms of the partnership, Gulf Innova will oversee the joint venture and ensure that it complies with all legal requirements.
The Growth of the Digital Asset Business in Thailand
Binance said its joint venture with Gulf was partly inspired by the growth of digital asset businesses in Thailand. The Southeast Asian country, which has a population of about 72 million, is establishing itself as a significant cryptocurrency hub in the region.
Interestingly, Thailand’s capital, Bangkok, was ranked 10th globally in the Crypto Readiness Index. Thailand’s growth as a crypto hub comes amidst the government’s ban on using cryptocurrency as a form of payment. However, the ban does not affect investment activities.
Thai regulators have also made moves to protect crypto investors by introducing a policy that requires crypto custodians to have backup plans to prevent losses in emergency situations.