The world’s largest crypto exchange Binance has acquired the first license to expand its business to Southeast East through a joint venture with Gulf Energy that starts in Q4 2023.
Binance in Bangkok
The digital asset market in Thailand is likely to change due to the arrival of the top cryptocurrency in the world in trading volume.
The Securities and Exchange Commission of Thailand on May 26 ratified the joint operations between Binance and Gulf Energy development to run a digital asset and brokerage exchange. The license is the first the exchange has achieved in Southeast Asia.
Launch dates of the 51-49 collaboration between Gulf Innova and Binance are set for the fourth quarter of 2023. Gulf Innova is the fintech appendage of Gulf Energy, Thailand’s largest private power producer, owning 0.4% ($20 million) of Binance U.S.
“Bringing together Binance’s proficiency and Gulf’s robust local connectivity and presence will lead to Thai crypto enthusiasts enjoying the fruits of blockchain technology.”
Richard Teng, regional manager for Binance in Asia.
Battle for digital asset market dominance
Binance’s debut in Thailand will likely change the prospects of the digital asset market in the area. Bitkub, a local exchange in Thailand, currently holds the lion’s share of digital assets in Thailand at 75.4%, with Zipmex coming at a far second battling the collapse of the Terra Luna crash in mid-2022.
However, the trading volume decreased by 79% during crypto winter, which saw FTX crumple.
The joint venture by Gulf and Binance becomes the seventh to be granted by the financial regulator. Teng assured users that Binance would lead trusted and secure operations while complying with local rules.
Binance has taken a compliance-first method to minimize friction with regulators and avoid warnings like those received in the U.K., some U.S. states, and Japan. The company took over Sakura Exchange to get an operating license in Japan. Binance entered Cambodia through a partnership with the Royal Group and agreed to work with Cambodian regulators to formulate digital assets regulations.
The joint venture comes when Gulf seeks ways to diversify its operations. The Thai giant power company’s shares have been dwindling following a directive by Move Forward Party, which won elections on May 14 with a promise to cut household bills by reorganizing power pricing.