Operator of Thailand’s leading crypto exchange records 48pc revenue drop

According to a financial statement released on the company’s website, BO reported a net profit of B341 million in 2022, down 86% from the previous year, reports Bangkok Post.

The total investment made by its customers tallied B30.5 billion, representing a drop of 65% from B87.2bn the year before.

The company’s revenue last year was B2.85bn, including B2.82bn in fees and service revenues, a decrease of 45% from 2021. In 2021, the company’s revenue was B5.51bn, of which B5.17bn came from fees and service income.

Most revenue from fees and services comprises three components – trading fees, transaction fees and listing fees – while other income is generated by interest income, along with profits or losses generated by sales of digital assets. Residual fee income was B39.7mn in 2022, down from B41.9mn in 2021, according to a company statement.

The company has unearned income of B81.6mn from receiving KUB digital assets from a fee credit exchange event to be used in lieu of digital asset trading fees at the company’s trading centre within a period of two years from the date of a successful transaction. Customers receive a bonus as an additional fee credit, according to the conditions specified in the contract.

BO’s asset value was B32bn in 2022, a decrease of B57.9bn or 64.4% from the year before. The reduction was mainly attributed to the decrease in deposits and digital assets of customers, which dropped to B30.5bn baht at the end of last year.

Licensed by the Securities and Exchange Commission, BO is the largest cryptocurrency exchange in Thailand. Established in 2016, BO has registered capital of B50mn and is 99.9% owned by Bitkub Capital Group Holdings.