Nikolas Sargeant
In a statement on January 16, Binance TH declared its accessibility to "all eligible users" and introduced a dedicated order book tailored for Thai baht trading pairs. The platform allows users to deposit and withdraw local currency seamlessly through integration with domestic banking systems.
Binance spokesperson informed Cointelegraph that, for now, the exchange will focus solely on spot trading. However, the company has ambitious long-term plans for Binance TH and collaborates with regulators to secure approvals for additional services.
This development follows Binance obtaining approval from the local Securities and Exchange Commission (SEC) two months ago to initiate operations. Initially, the exchange was launched on an "invitation-only" basis to open it to the general public in 2024.
Binance had initially revealed its intentions to establish a crypto exchange in Thailand in May 2023 and secured a digital asset exchange and brokerage operator license from the Ministry of Finance in the same month.
Operated by Gulf Binance, a joint venture between Binance Capital Management and Gulf Innova (a subsidiary of Thai energy giant Gulf Energy), Binance is entering a market where Bitkub holds a dominant 77% market share, commanding a daily volume of approximately $30 million with the Thai baht and Tether pair being the most traded.
Despite the presence of other exchanges like Upbit, Bitazza, and Zipmex, Binance is eyeing a significant position in the Thai market. However, Zipmex suspended its trading activities in November due to regulatory pressure.
Gulf Binance CEO Nirun Fuwattananukul expressed, "Over the past year, we have been working closely with Thai regulators, putting substantial effort into detailed planning." Binance CEO Richard Teng emphasized the company's goal to contribute to digitizing Thailand's economy and fostering growth.
It's worth noting that Binance TH is exclusive to Thai residents, requiring a Thai National Digital ID for Know Your Customer procedures.
Cryptocurrency trading remains popular in Thailand, but using digital assets for payments has faced challenges, especially after the government's announcement in September 2023 to tax overseas income from stock and crypto traders starting in January 2024.
On January 15, Binance released its 2024 report outlining key growth areas, including themes related to the Bitcoin ecosystem, ownership economy applications, artificial intelligence, real-world assets, on-chain liquidity, and institutional adoption.
