Binance May Open Exchange and Related Businesses in Thailand

After signing an agreement with Gulf Energy Development PCL, Binance is looking to re-establish cryptocurrency trading services and may open a new branch in Thailand.

Gulf Energy Development PCL, a Thai holding company run by billionaire Sarath Ratanavadi, focuses on the energy sector.

Gulf Energy Development PCL has reportedly struck a deal with the world’s largest cryptocurrency exchange based on the strong assumption that Thailand’s digital economy infrastructure will see “rapid growth” in the coming years.

The collaborative effort between Gulf Energy Development PCL, Binance, and the Thai government will focus on exploring Binance’s options for the Thai market, which may include opening an exchange and related operations in Thailand.

A spokesperson for Binance told Reuters on Jan. 17: “Our goal is to work with the government, regulators, and innovative companies to develop the cryptocurrency and blockchain ecosystem in Thailand.”

Thailand’s digital economy is expected to see clearer regulation of digital asset dealers. On Jan. 6, the head of the Thai government’s tax bureau announced plans to impose a 15 percent capital gains tax on cryptocurrency transactions, and made regulatory transparency a top priority this month.

On Jan. 9, the Thai Digital Assets Association asked for clarification on the exact content of the tax, as domestic traders fear they may inadvertently violate tax laws.

Despite the positive developments, the Bank of Thailand has repeatedly issued warnings to commercial banks and local businesses to accept cryptocurrencies as a means of payment.

Binance was criminally charged by Thailand's Securities and Exchange Commission (SEC) in July 2021. The complaint accused Binance of operating a digital asset business without a license and launched an investigation into the exchange.

The SEC said that Binance ignored warnings issued as early as April 2021 and wrongly allowed Thai citizens to trade cryptocurrencies on its website by “matching orders or arranging parties or providing systems or facilitating agreements.”