Crypto enthusiasts and traders in Thailand have reason to celebrate as Binance recently secured a digital asset license in the country. This significant milestone is a result of a collaboration between Binance and Gulf Innova Co, a wholly-owned Thai subsidiary of Gulf Energy and a publicly listed holding company. The partnership, dubbed Gulf Binance, aims to establish a local exchange and has been in the works for over a year.
Previously, Binance had faced hurdles in Thailand due to operating without a license. This led to criminal complaints from the country’s securities regulator and forced the exchange to look for a viable way to reenter the market. Partnering with a regulated domestic company was the solution needed to appease the authorities and acquire the much-needed license.
This marks Binance’s first license in Southeast Asia, a region where it still operates without appropriate licensure in some countries, such as the Philippines. Gulf Binance is positioning itself as a “compliant-first exchange,” hoping to attract domestic users in a growing crypto market. According to data from Triple-A, around 4.3 million individuals in Thailand, equivalent to 6.47% of the population, own some form of cryptocurrency.
Richard Teng, Binance’s regional head of Asia, Europe, and MENA, expressed optimism about the exchange’s future in Thailand. He highlighted the country’s commitment to embracing blockchain technology, stating that users can expect “access to a trusted and regulated service.” However, some question whether partnering with a local business can guarantee full compliance for an international exchange like Binance.
It’s worth noting that in recent history, Binance has faced a few setbacks due to operating without appropriate licensure. Just last month, the exchange had its derivatives license canceled in Australia over allegations of misleading retail investors. The exchange allowed them to pick up risky products designated for wholesale clients. The new partnership could help Binance avoid such problems by operating within the purview of local regulations.
As the crypto market grows and expands, countries like Thailand have to carefully consider their approach to regulation. While some argue that harsh restrictions might hinder innovation, others insist on a regulated market to ensure consumer protection and the avoidance of fraudulent activities.
Binance’s successful securing of this digital asset license in Thailand is undoubtedly a significant step forward, both for the company and the country’s crypto ecosystem. With an expected launch date in the fourth quarter of this year, Thai crypto enthusiasts will soon have access to a regulated and licensed platform for their digital asset needs.
Source: Blockworks
