The global cryptocurrency exchange Binance has recently launched its services in Thailand, marking a significant entry into a market predominantly controlled by the Bangkok-based Bitkub. Announced on January 16, Binance TH is now accessible to all eligible users, featuring a unique order book specifically for trading pairs with the Thai baht. Additionally, the platform offers seamless integration with local banking systems for deposits and withdrawals.
A representative from Binance informed that currently, the exchange is only offering spot trading services. However, they have broader ambitions for Binance TH and are collaborating with regulatory bodies to expand their offerings.
Binance's move into the Thai market follows the receipt of operational approval from Thailand's Securities and Exchange Commission two months ago. Initially, the launch was on an invite-only basis, with a full public opening planned for 2024. The plans for establishing a Thai cryptocurrency exchange were first unveiled by Binance in May 2023, and they subsequently obtained a license for operating a digital asset exchange and brokerage from Thailand's Ministry of Finance in the same month.
Operated under Gulf Binance, a joint venture between Binance Capital Management and Gulf Innova (part of the Thai energy conglomerate Gulf Energy), Binance aims to challenge the dominance of Bitkub in the Thai market. Bitkub, with about 77% market share according to HashKey data, sees a daily trading volume of approximately $30 million, mainly in Thai Baht and Tether.
Thailand's cryptocurrency exchange landscape also includes Upbit, Bitazza, and Zipmex. Zipmex, which started in 2021, had to pause its operations in November due to regulatory concerns.
Nirun Fuwattananukul, CEO of Binance Gulf, highlighted the extensive collaborative efforts with Thai regulators over the past year. Richard Teng, CEO of Binance, emphasized the company's goal to contribute significantly to Thailand's digital economy, fostering growth and creating new opportunities.
However, Binance TH has a limitation: it is not accessible to foreigners living in Thailand, as registration requires a Thai National Digital ID for the Know Your Customer process. Despite this, cryptocurrency trading remains a popular activity in Thailand. In March 2022, digital assets were recognized for payment purposes.
The Thai government, established in September 2023, announced its intention to tax stock and cryptocurrency traders on their foreign income starting January 2024.
On another note, Binance unveiled the key focus areas of its 2024 report on January 15, shedding light on growth sectors such as the Bitcoin ecosystem, ownership economy applications, artificial intelligence, real-world asset tokenization, on-chain liquidity, and institutional adoption.
