Binance partners with Gulf Energy to set up a digital asset exchange in Thailand

Binance partners with Gulf Energy to set up a digital asset exchange in Thailand

By Sam Grant - min read

Last year, Binance received a criminal complaint from the Thailand SEC over unlicensed operation 

Thailand-based Gulf Energy Development Public Company has reached an agreement with crypto exchange Binance to explore avenues leading to the development of a digital asset trading platform and related business in the country.

A letter sent to The Stock Exchange of Thailand on Monday revealed an MoU reached between the two parties that would see Binance help advance blockchain technology and scale the development of digital assets in the country.

Gulf Energy is said to have banked its decision to complete the agreement with Binance in the hopes that the infrastructure around Thailand's digital economy would proliferate in the coming years.

The firm explained that with a combination of its experience in setting up a networked business and Binance's cutting edge tech in the exchange business, the local digital assets' scene would benefit greatly.

"The […] company brings its expertise in setting up business in the country with an unparalleled network of local corporates from real sector and the financial sector, while Binance brings its leading exchange technology," the company's CEO Ms. Yupapin Wangviwat wrote.

A spokesperson from Binance has said that this is only a first in examining the available opportunities in the Asian country while maintaining openness and a collaborative demeanour.

"Our goal is to work with government, regulators and innovative companies to develop the crypto and blockchain ecosystem in Thailand," the spokesperson told Reuters yesterday.

A haunting past in Thailand

Binance's record in Thailand is anything but clean. The Southeast Asian country was among those that pursued the exchange last year for unlicensed operation. In July 2021, the Thailand SEC filed a criminal complaint about Binance, reporting that the exchange had illegally exposed trading and exchange services via its website to Thai users.

However, by August, the exchange had halted its activities in the country. An excerpt from an email to the Bangkok Post read, "Binance does not currently have exchange operations in Thailand, nor do we actively solicit Thai users."

Binance explained that rather than an outright accusation, the SEC's complaint letter only specified an investigation into the matter.

Thailand has been one of the more proactive countries worldwide on digital asset regulation. Last month, the governor of the Bank of Thailand revealed plans to establish a crypto regulatory framework to cut down on risks and enhance investor protection.

More recently, the government enforced a 15% tax requirement (miners and traders) on crypto gains this year.