<p>The world’s largest cryptocurrency exchange, Binance, has teamed up with Gulf Energy Development, a leading energy company in Thailand, to operate a digital asset exchange in the country.</p><h2 id="header-0">Invitation-only launch</h2><p>The new platform, Binance.th, aims to capture the growing demand for crypto services in Southeast Asia. Binance.th, which is currently in its beta testing phase, is expected to open to the public in early 2024. A <a href="https://weblink.set.or.th/dat/news/202311/1391NWS151120231838120570E.pdf" rel="noopener noreferrer nofollow">filing</a> on Wednesday by Gulf to the Thai stock exchange demonstrates that the platform has received approval from the Thai Securities and Exchange Commission to offer exchange and brokerage services for cryptocurrencies and digital tokens. The filing states:</p><p>“Gulf Binance’s digital asset platform will provide digital asset exchange and digital asset broker services for both cryptocurrencies and digital tokens, prioritizing security and compliance with SEC regulations.”</p><p>The platform is initially available by invitation only, and the plan is to eventually open the exchange to the general public. It’s understood that the platform will strive to provide a “globally standardized” service that will enhance the level of service in Thailand and promote the development of the country’s blockchain ecosystem.</p><h2 id="header-1">Market opportunity</h2><p>Binance.th enters the Thai crypto market at a time when the local leader, Bitkub, holds a dominant share of 75.4%. Bitkub benefited from the global crypto market downturn in 2022, which affected its competitors such as FTX and Zipmex.</p><p>Although it has extended market share during the downturn and as a consequence of the demise of other platforms, Bitkub has also <a href="https://medium.com/&#64;coinness.gl/bitkub-addresses-market-conditions-thru-job-cuts-9312d7210812" rel="noopener noreferrer nofollow">struggled</a> with market conditions. In July its parent company Bitkub Capital Group, reduced headcount by six percent. Bitkub recorded $28.6 billion in trading volume last year, out of the total $37.94 billion generated by the top four Thai exchanges.</p><p>Binance.th hopes to challenge Bitkub’s position by leveraging Binance’s global reputation and expertise in the crypto industry.</p><h2 id="header-2">Legal woes</h2><p>The launch of Binance.th comes amid Binance’s legal and regulatory troubles in the U.S. and Europe. In September, the U.S. Securities and Exchange Commission (SEC) sued Binance, its U.S. subsidiary, and its founder Changpeng Zhao (CZ) for allegedly listing unregistered securities in the form of cryptocurrencies.</p><p>In June, the SEC also accused CZ and Binance of illegally marketing its international platform to U.S. customers.</p><p>Binance has been trying to improve its compliance and governance standards in response to regulatory scrutiny. The company has hired former regulators and executives from the traditional finance sector to lead its operations in various regions. Binance has also applied for licenses and registrations in several jurisdictions, such as the U.K., Singapore and Japan.</p><p>The <a href="https://medium.com/&#64;coinness.gl/gulf-binance-secures-thai-digital-asset-license-a43f2da47efe" rel="noopener noreferrer nofollow">origins</a> of this deal stem from a memorandum of understanding (MOU) signed between Binance and Gulf Energy in January 2022. The joint venture business which emerged acquired a digital operator license in Thailand in May of this year.</p><p>By expanding its presence in Southeast Asia, Binance hopes to tap into the potential of the emerging crypto markets and diversify its revenue streams. Binance.th also marks the first bank-backed crypto exchange in Thailand, as Gulf Energy Development is partly owned by the state-owned Krung Thai Bank.</p>

Binance and Gulf Energy launch digital asset exchange in Thailand

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