Global crypto exchange giant Binance is continuing its expansion into new markets, announcing this week a joint venture to launch a new Thailand-based exchange called Gulf Binance. The initiative is a collaboration between Binance and Gulf Energy Development, one of Thailand’s largest energy conglomerates.
- Binance is launching a new crypto exchange in Thailand via a joint venture with Gulf Energy Development.
- The exchange, called Gulf Binance, has received approval from the Thai SEC.
- Gulf Binance will launch on an invitation-only basis initially, with a public rollout in early 2024.
- Gulf Energy is a major Thai energy company that is diversifying into digital infrastructure businesses.
- Binance is expanding globally but facing regulatory challenges in the US and Europe.
Gulf Binance has already received approval from the Thai Securities and Exchange Commission (SEC) to operate a regulated crypto exchange under the SEC’s jurisdiction. The exchange will provide trading services for both cryptocurrencies as well as digital tokens, with a focus on security and regulatory compliance according to Gulf Energy’s stock exchange filing.
The new crypto trading platform will initially only be available to Thai residents on an invitation-only basis. Gulf Binance plans to fully launch the exchange to the public in early 2024.
The move allows Binance to gain a foothold in the Thai crypto trading market by leveraging local partner Gulf Energy’s established presence and business network in the country. It comes as Binance aims to continue expanding globally but faces mounting regulatory hurdles in jurisdictions like the United States and Europe.
Thailand has recently emerged as a favorable destination for crypto businesses seeking regulatory clarity. The Thai SEC has rolled out clear licensing regimes for crypto exchanges and other digital asset operators. Last month, Binance assisted police in Thailand with recovering $277 million stolen by scammers, underscoring the exchange’s intent to collaborate with authorities.
Gulf Energy, Thailand’s largest natural gas distributor, is diversifying into new digital infrastructure ventures including blockchain technology. The energy conglomerate is a major investor in Binance’s US-based exchange Binance.US.
The joint venture provides Binance with an avenue to offer its crypto trading services in Thailand in full compliance with local regulations. With other major jurisdictions becoming increasingly hostile, Southeast Asia and other regions are viewed as friendlier destinations where Binance and other crypto firms can continue growing under regulatory oversight.
The Gulf Binance launch represents the latest step in Binance’s global expansion as it searches for new markets to offer crypto trading services. But with regulators worldwide continuing to crack down on the sector, Binance and rival exchanges still face challenges balancing rapid user growth with meeting compliance obligations.