Binance Partners With Gulf Energy To Launch Crypto Exchange in Thailand

Binance, the largest crypto exchange, has entered an agreement with a Thai billionaire’s firm to launch a digital asset exchange.

In a partnership, announced Monday, with Gulf Energy Development PCL, Binance is seeking to institutionalize its global operations, a Bloomberg report said. Gulf Energy is the company behind billionaire Sarath Ratanavadi.

The partnership is driven by the likely “rapid growth” of Thailand’s digital infrastructure in the coming years, a letter to the Stock Exchange of Thailand noted.

“Our goal is to work with government, regulators, and innovative companies to develop the crypto and blockchain ecosystem in Thailand,” a Binance spokesperson said.

Criminal Complaint Still Remain

Last year, Binance exchange received a criminal complaint from the Thailand regulator, for operating without a license.

Thailand’s Securities and Exchange Commission (SEC) warned Binance in April 2021, over its unlicensed digital asset exchange business in a letter, but received no response. This led the regulator to file a criminal complaint with the Thai police.

Despite the charges on Binance, users keep trading on the site, doubting the government’s power to prevent them, a Bangkok Post report said.

“Binance does not currently have exchange operations in Thailand nor do we actively solicit Thai users,” a Binance spokesperson told the publication at that time.

The complaint filed by the SEC on Binance carried a penalty of two to five years’ imprisonment, a fine of 200,000 to 500,000 baht ($6000 – $15000), and additional fines of up to 10,000 baht for every day the contravention continues. It is unknown whether the exchange had paid a penalty or not.

That said, Binance still holds more than 250,000 members on its Thai Binance Facebook group.

Binance has been subject to increasing regulatory pressure around the globe. Binance faced an anti-money laundering probe in the US, while in the UK, banks such as Barclays and Santander have blocked fiat withdrawals from the exchange after receiving a warning from the FCA.

Story continues

Thailand’s Crypto Push

Thailand has been moving “slow and steady” when it comes to recognizing cryptos as a legal tender. The country has announced a selective ban on cryptocurrency trading, targeting meme coins such as Dogecoin, and Non-fungible tokens (NFTs).

The nation is laying the groundwork to become a “crypto-positive” country. For instance, the government of Thailand said last week that it is furthering in regulating the local cryptocurrency ecosystem by introducing new tax rules.

The country has imposed a 15% capital gains tax on the profits from crypto trading.

In December, the Bank of Thailand had plans to create a cryptocurrency regulatory framework to minimize trading risks and enhance investor protection.

Additionally, Thailand’s Tourism Authority is working on its own new digital token, “TAT Coin”, which will be accepted for travel bookings. It may take a while before travelers can actually start using cryptos like Bitcoin, Ethereum, and other digital assets for travel, as the country hasn’t recognized cryptocurrencies as a legal tender.

This article was originally posted on FX Empire

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