Binance intends to restore its crypto exchange services and possibly open a new branch in Thailand after signing an agreement with Gulf Energy Development PCL.
Gulf Energy Development PCL is a Thai holding company run by billionaire Sarath Ratanavadi which focuses on the energy sector.
Reportedly, Gulf Energy has reached an agreement with the world’s largest cryptocurrency exchange based on the strong assumption that Thailand’s digital economy infrastructure will experience “rapid growth” in the coming years..
Cooperative efforts between Gulf Energy, Binance and the Thai government will focus on exploring Binance’s options in the Thai market, which may include opening an exchange and related business in the Kingdom.
A Binance spokesperson told Reuters on Jan. 17: “Our goal is to work with the government, regulators and innovative companies to develop the cryptocurrency and blockchain ecosystem in Thailand”.
The Thai digital economy is poised to see more regulatory clarity for digital asset traders. The director general of the Thai government’s Department of Revenue made regulatory transparency a top priority this month after announcing a 15% capital gains tax on cryptocurrency trading on Jan. 6.
On January 9, the Thai Digital Assets Association requested clarification on the details of the tax due to concerns from domestic traders that they may unintentionally violate the tax code.
Despite positive developments, Thailand’s central bank has repeatedly issued warnings to commercial banks and local businesses about accepting cryptocurrencies as payments.
Binance was on the receiving end of a criminal complaint from the Thai Securities Commission (SEC) in July 2021. The complaint accused Binance of operating a digital asset business without a license and opened an investigation against the exchange.
The SEC stated that Binance ignored warnings from April 2021, and that it had improperly granted Thai citizens access to cryptocurrency trading on its website. “matching orders or arranging counterparties or providing the system or facilitating entry into a deal.”
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