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Gulf Binance, a partnership between crypto exchange Binance and Gulf Energy’s innovation division, Gulf Innova, received approval in Thailand for a digital asset operator license.
Thailand’s Ministry of Finance recently approved Gulf Binance Co., Ltd, a joint venture between cryptocurrency exchange Binance and Gulf Innova, for a digital asset operator license. The approval from Thai regulators gives the firm the green light to advance plans to open a regulated digital asset exchange and broker in the country.
A blog post announcing the news said the platform aims to launch by Q4 2023 and is to be regulated by the Thai Securities and Exchange Commission (SEC).
Creating Value for Thailand
Binance and Gulf reached an agreement to create a joint venture in 2022 and have since been working closely with Thai regulators to establish a fully-compliant exchange that strictly adheres to the SEC’s guidelines.
The collaboration brings Binance’s expertise in the digital asset and crypto space together with Gulf’s local industry knowledge and established Thai presence. The joint venture aims to “drive innovation, foster growth, and deliver the best value possible to Thai users.”
Binance’s Head of Asia, Europe, and MENA, Richard Teng, commented on the regulatory approval saying:
We are grateful and honored to be granted digital asset operator licenses for Gulf Binance in Thailand — a country with a thriving crypto space that has demonstrated strong commitment in embracing blockchain technology.
By harnessing Binance’s expertise together with Gulf’s established local presence and network, Gulf Binance aims to showcase the full potential of blockchain technology to meet the needs of Thai users. Local users can expect access to a trusted and regulated service that prioritizes user security alongside compliance with local regulations.
Thailand Warms to Digital Assets
The Southeast Asian nation has been warming up to the digital asset space and has committed to promoting security and regulatory compliance while fostering and encouraging innovation in the digital space as it recognizes blockchain’s transformative potential in the country.
The Thai cabinet recently agreed to waive income and value-added tax for companies that issue digital investment tokens. Although the government would lose out on a significant amount of tax revenue, the move signifies the government’s willingness to foster growth within the industry.
Cryptocurrencies and digital assets have gained massively in popularity after the Thai SEC started regulating the sector. In March 2022, the regulatory body eased crypto regulations to promote industry growth. The relaxed rules meant that the tax burden on crypto investors in Thailand was lowered from April 2022 until the end of 2023.
However, following the turmoil witnessed in the industry in 2022, Thai regulators and the central banks were forced to implement stricter policies to deal with the difficulties. The SEC announced a total ban on using crypto for payments, arguing it could impact the country’s financial stability and the overall economy.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.