Thailand will be hosting a new crypto exchange firm financed by Binance through a local company known as “Gulf Energy Development” because the Thai regulator namely Securities & Exchange Commission (SEC) took enforcement action against Binance Thailand earlier in which SEC accused Binance of operating in the country without proper authorization and license.
A Memorandum of Understanding (MOU) has been signed between Binance Global and a Thai registered company namely Gulf Energy Development (GED). The purpose of the MOU is to establish a crypto exchange in Thailand which will be financed by Binance Global and established by GED.
On behalf of Binance Global, GED has informed the Thai Stock Exchange that through its subsidy namely Gulf Innova, the company wishes to establish a crypto exchange firm. It has been submitted by GED that the market of digital assets and currencies is growing at a rapid pace in Thailand. In addition, technology and innovation are transforming a country’s economy by improving and modifying its existing financial infrastructure. It is necessary therefore to seek avenues where infrastructure can be built for digital asset exchanges for meeting the demands of people in Thailand.
GED furthermore apprised Thai Stock Exchange that aimed with this objective GED has joined hands with Binance Global. With the partnership required infrastructure will be developed in the country solely for the Thai people. Meanwhile, Binance will educate Thai people and corporations how they can on their own make good use of blockchain technology.
Binance had earlier developed an issue with the SEC of Thailand. Resultantly, SEC was compelled to lodge a complaint of criminal nature against Binance Thailand. The action was taken in the month of July 2021 and SEC accused Binance Thailand of operating an unauthorized and non-licensed business. The complaint was handed over to the country’s Economic Crime Suppression Division, which is a crime wing of Thai Police. Since then the matter is under investigation against Binance Global.
So in an effort to avoid further issues with SEC, Binance is trying to develop its establishment in Thailand through a local firm. In this way, Binance will be able to obtain a crypto service license from the relevant Thai authorities. In case there is an issue, then Binance will not be named directly and in fact, GED will be responsible for the same.
The decision of Binance also ensures its commitment towards becoming a globally licensed crypto exchange company. When the Thai regulators lodged complaints, similarly, there were other complaints filed by different countries’ regulators against Binance. At that time Binance was accused of operating businesses in several countries without mandatory approvals. In some jurisdictions, Binance had to even shut down its crypto trade and advisory services. However, the company’s CEO said that he will try to settle the disputes with the regulators by becoming a fully licensed exchange.