In a groundbreaking move, Binance, the world’s largest digital asset exchange, has obtained its first license in Southeast Asia from Thailand’s SEC. This milestone achievement comes as a result of Binance’s partnership with Gulf Energy Development, a prominent private power producer in Thailand.
Under the 51-49 joint venture with Gulf Innova, the fintech arm of Gulf Energy, Binance is set to commence operations in the fourth quarter of 2023. Gulf Energy invested $20 million for a 0.4% stake in Binance’s U.S. operations, solidifying the collaboration.
Richard Teng, regional head of Asia, expressed enthusiasm about the partnership, stating that Binance, with its expertise, aims to leverage Gulf’s local presence and network to demonstrate the immense potential of blockchain technology to serve Thai users’ needs.
With Binance’s entry into the Thai market, currently dominated by Bitkub, a new competitive platform will emerge. Notably, Bitkub’s market share witnessed a significant boost following the bankruptcy of its closest competitor, Zipmex, after the Terra Luna incident in mid-2022.
Thailand’s crypto market has faced challenges in the past, including a crypto winter that caused a 79% decline in trading volume in 2017 and the subsequent closure of the global exchange FTX. However, Binance’s presence is expected to provide Thai users with a trusted and regulated service that prioritizes security and compliance with local regulations.
Recently, Binance made headlines by announcing the discontinuation of several trading pairs, including popular coins like Cardano (ADA), Ripple (XRP), and Polygon (MATIC). The exchange continues to make strategic decisions to streamline its offerings and enhance its operations in various markets worldwide.