An exchange and related businesses may be opened in Thailand as part of the joint efforts between Gulf Energy, Binance and the Thai government.
Gulf Energy Development PCL is a Thai holding company specializing in the energy sector and led by billionaire Sarath Ratanavadi. Gulf Energy is said to have reached a deal with Binance based on the firm belief that Thailand’s digital economy infrastructure will see “rapid expansion” in the coming years.
Gulf Energy, Binance, and the Thai government will work together to investigate Binance’s alternatives in the Thai market, which might include the establishment of an exchange and associated companies.
“Our objective is to cooperate with government, authorities, and innovative enterprises to create the crypto and blockchain ecosystem in Thailand,” a Binance representative told Reuters on Jan. 17.
Greater regulatory clarity for digital asset trading is expected in Thailand’s digital economy. After announcing a projected 15% capital gains tax on crypto trades on Jan. 6, the Thai government’s Revenue Department director-general made regulatory transparency a primary goal this month.
The Thai Digital Asset Association requested clarity on the tax’s terms on Jan. 9, citing fears from local dealers that they would inadvertently break the law.
Despite the encouraging developments, Thailand’s central bank has warned commercial banks and local companies against accepting cryptocurrency as payment.
In July 2021, the Thai Securities and Exchange Commission (SEC) filed a criminal lawsuit against Binance. Binance was accused of running a digital asset company without a license, and an inquiry was launched into the exchange.
Binance has improperly provided Thai residents access to crypto trading on its website by “matching orders or arranging for counterparties or supplying the system or enabling entrance into an agreement,” according to the SEC, despite warnings dating back to April 2021.
