Binance’s new launch in Thailand is facing scrutiny as regulatory compliance takes center stage.
Binance, one of the largest cryptocurrency exchanges, will launch a new digital asset platform in Thailand in collaboration with Gulf Energy Development Pcl, owned by billionaire Sarath Ratanavadi. The joint venture received the necessary licenses, but Binance’s recent guilty plea and $4.3 billion fine for violating U.S. anti-money laundering and sanctions laws raised concerns.
regulatory investigation
Binance’s regulatory troubles have worsened in recent months, with the company pleading guilty to violating U.S. anti-money laundering and sanctions laws. The move generated $4.3 billion in revenue. decent Our commitment to improving compliance and transparency. The news cast a shadow over the planned Thai digital asset platform, which will compete with other licensed operators in the country.
Partnership with Gulf Energy Development PCL
Sarath Ratanavadi’s Gulf Energy Development Pcl is one of Thailand’s richest men, with an estimated net worth of $11 billion. The partnership between Binance and Gulf Energy Development Pcl will see the latter own a 51% stake in the joint venture, while Binance will hold the remaining 49%. The new platform is scheduled to be launched in January 2023.
Stricter regulatory oversight
Despite the decline in demand, some Thai businesses are supporting the revival of cryptocurrencies. Kasikornbank Pcl, one of the country’s largest lenders, acquired a licensed cryptocurrency exchange operator last month. Sarath Ratanavadi also highlighted the need for stricter regulatory oversight to restore investor confidence following last year’s digital asset debacle and bankruptcies such as that of FTX.
“Cryptocurrencies have grown at a pace that is difficult for regulation to keep up with. Officials have since tightened rules and modified business practices, and all market participants must follow the new regulations.”
Sarath Ratanabadi
Binance’s new Thailand venture faces challenges including regulatory scrutiny, declining demand, and increased competition. However, the company is confident that its partnership with Gulf Energy Development Pcl and stricter regulatory oversight will help restore investor confidence in the Thai cryptocurrency market.