Obtaining regulatory approval in Thailand is in line with Binance’s expansion efforts, and it comes in the context of Thai regulators looking to implement a set of regulations to protect cryptocurrency investors according to cointelegraph.com. Specifically, Thailand’s financial regulator implemented a new set of rules for crypto custody services in January 2023, which mandated that all crypto custodians should have a contingency plan in case of unforeseen developments.
Binance has partnered with Gulf Energy’s innovation branch, Gulf Innova to create a joint crypto venture named Gulf Binance, which has received digital asset operator licences from Thailand’s Ministry of Finance. With these licences, the company can operate a crypto exchange regulated by the country’s Securities and Exchange Commission. Binance has revealed that it plans to launch a digital asset exchange in Thailand by Q4 2023.
The companies have been working together for more than a year and have talked about launching a local digital asset exchange. Binance representatives cited by cointelegraph.com talked about Gulf Binance and revealed that it will leverage Binance’s expertise as well as Gulf’s established local presence and network to explore the potential of blockchain technology.
According to Statista, around 12% of Thailand’s population used cryptocurrency in Thailand in 2022, and the popularity of these digital assets has grown steadily in the Southeast Asian country over the last few years. This surge in crypto popularity started in 2021 during the COVID-19 pandemic, when Bitcoin reached an all-time high value of more than THB 2 million.
The same source reveals that a local cryptocurrency exchange named Bitkub raised cryptocurrency awareness among Thais through an extensive marketing campaign that involved mega billboards, online ads, and public transport ads.
While it expands into new markets, Binance is also shuttering its operations in other parts of the world such as Canada. In May 2023, the company announced that it will cease its operations in Canada due to new stablecoin and investor limits.
The new Canadian guidelines were published in February, and Binance worked with Canadian regulators for several weeks in order to reach a solution that would allow the company to continue its operations in the North American country. However, no such solution was reached, which is why the cryptocurrency exchange has announced its withdrawal from the Canadian marketplace.
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