The post Binance Expands in Thailand with New Regulatory Approvals; Teams Up with Billionaire Sarath Ratanavadi appeared first on Coinpedia Fintech News
Cryptocurrency exchange Binance has secured new regulatory approvals in Thailand. This development comes from a joint venture between Binance Holdings Ltd. and Gulf Energy Development Pcl, a leading Thai energy company. The partnership, known as Gulf Binance, is set to launch a new crypto exchange in Thailand by the fourth quarter of 2023.
Regulatory Milestone Achieved
Gulf Binance successfully obtained digital asset operator licenses from Thailand’s Ministry of Finance in mid-May. This approval marks a crucial step in the venture’s plans, as announced by Binance on May 26. Additionally, Gulf Binance Co. received the green light from the Thai Securities and Exchange Commission on November 10, allowing it to commence operations, as per an exchange filing.
The upcoming crypto exchange platform in Thailand is planned to be an invitation-only exchange initially before opening up to the broader public. Gulf Energy, one of Thailand’s largest corporations, supports this strategic move. The company’s CEO, Sarath Ratanavadi, is recognized as the country’s second richest person, with a net worth of approximately $10.6 billion.
Thailand’s Crypto Landscape
Thailand presents a complex environment for cryptocurrency businesses. The Thai Securities and Exchange Commission (SEC) has banned using cryptocurrencies as payment from April 1, 2022. However, investments and trading in digital assets remain permissible under new regulations governing digital asset enterprises, introduced on March 23, 2022.
Under these regulations, businesses dealing in digital assets, such as cryptocurrency exchanges, are prohibited from offering cryptocurrency payment services or promoting the use of digital assets for payments. They must cease any activities that facilitate payments for goods and services using digital wallets and must inform customers about the risks of using digital assets for transactions. These businesses had until the end of April 2022 to align their payment architectures with the new rules.
The entry of Gulf Binance into the Thai market represents a significant milestone in the global expansion of Binance. While the regulatory environment in Thailand poses certain challenges, the approval from the Ministry of Finance and the Thai Securities and Exchange Commission paves the way for Gulf Binance to establish a regulated crypto exchange, contributing to the evolving landscape of digital finance in the region.