Binance has finally locked down a digital asset license in Southeast Asia after partnering with a local business in Thailand to establish an exchange there.
Dubbed Gulf Binance, the initiative is a collaboration between the world’s largest crypto exchange and Gulf Innova Co, a wholly-owned Thai subsidiary of publicly listed holding company Gulf Energy.
It follows a year-long effort for Binance to reestablish a foothold in the country after being booted out for operating without a license amid criminal complaints from Thailand’s securities regulator.
It’s also the first license Binance has secured across the region, despite continuing to operate in several countries such as the Philippines without appropriate licensure.
The agreement between the pair, laid out in January of last year, was designed to allow the exchange a viable pathway to reenter by assuaging those concerns through a domestic and publicly regulated business.
It’s a marked change from previous efforts from the major exchange which, in the past, has operated without licensure at the risk of souring relationships with country officials and watchdogs.
Just last month, Binance had its derivatives license canceled in Australia over allegations it had mislead retail investors by allowing them to pick up risky products designated for wholesale clients.
By partnering together, Binance and Gulf are hoping to draw in domestic users to what they’re calling a “compliant-first exchange,” a statement on Friday reads.
Approximately 4.3 million individuals, equivalent to 6.47% of the total population in Thailand, own some form of crypto, according to data provided by Triple-A.
Richard Teng, Binance’s regional head of Asia, Europe and MENA said those same users would be able to expect “access to a trusted and regulated service.”
Thailand stands as “a country with a thriving crypto space that has demonstrated strong commitment in embracing blockchain technology,” Teng said in the statement.
Further details on its business operations are expected to be made available closer to the exchange’s launch date in the fourth quarter of this year.
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