Binance Launches in Thailand, Potentially Disrupting Local Crypto Exchange Dominated by Bitkub
Summary:
Binance, the global crypto exchange, has launched its services in Thailand, challenging the market largely dominated by Bangkok-based Bitkub. The platform will allow Thai baht trading pairs and enable users to deal with local currency easily. Despite an ambitious long-term plan, Binance TH will only offer spot trading for now. The opening comes after Binance secured approval from Thailand's Securities and Exchange Commission and received a digital asset exchange license from Thailand's Ministry of Finance. Bitkub currently holds about 77% of the local market share. Binance envisages fostering Thailand's digital economic growth and development.
Binance, the international cryptocurrency exchange, has officially launched its services in Thailand, potentially disrupting the local crypto exchange marketplace, largely controlled by Bangkok's Bitkub. As of January 16, Binance TH announced that "all eligible users" could access their platform and utilize a dedicated order book crafted specifically for Thai baht trading pairs. Domestic banking system integrations will allow users to deposit and withdraw local currency smoothly and seamlessly.
In a conversation with Cointelegraph, a Binance representative confirmed that at present, no services besides spot trading will be offered. However, ambitious long-term plans are underway for Binance TH, as they work in tandem with regulators to acquire approvals for more services.
This move comes two months post Binance securing permission from Thailand's Securities and Exchange Commission (SEC) to commence operations. Initially, these services were launched on an "invitation only" foundation, with plans to expand to the public in 2024.
Binance's plans for a crypto exchange in Thailand were first brought to light in May 2023 when they gained a digital asset exchange and brokerage operator license from Thailand's Ministry of Finance in the same month.
The exchange is run by Gulf Binance, a collaboration between Binance Capital Management—a Binance subsidiary—and Gulf Innova, a subsidiary of Thailand's energy giant, Gulf Energy. However, Binance is entering a space mostly dominated by Bitkub with approximately 77% of the market share as reported by HashKey. Bitkub's daily trade volume is roughly $30 million, mainly consisting of Thai baht and Tether (USDT) pairs.
Other crypto exchanges operating in Thailand include Upbit, Bitazza, and Zipmex. However, due to regulatory scrutiny, Zipmex halted trading services in November.
Gulf Binance CEO Nirun Fuwattananukul mentions substantial detailed planning and close collaboration with Thai regulators over the last year. Binance CEO Richard Teng adds their aim to be an integral part of Thailand's digital economic growth and new opportunity creation.
Despite crypto trading's legality in Thailand, the military-backed government outlawed digital asset usage in payments in March 2022. In September, the new government declared plans for imposing taxes on stock and crypto revenues from overseas starting in January 2024.
On January 15, Binance presented its themes report for 2024, highlighting aspects like the Bitcoin ecosystem, artificial intelligence, real-world assets, on-chain liquidity, ownership economy applications, and institutional adoption as crucial growth domains.
Published At
1/16/2024 9:00:00 AM
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