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Binance Creates History As It Secures First License In Southeast Asia

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Binance receives the green light from Thailand’s SEC to operate a crypto exchange and brokerage. This is its first license in Southeast Asia, thanks to the partnership with Gulf Energy Development, one of Thailand’s largest private power producers.

As per local sources, Binance will start operations in the fourth quarter of 2023 as a 51-49 joint venture with Gulf Innova, the fintech arm of Gulf Energy, which invested $20 million for a 0.4% stake in Binance’s U.S. operation. 

Speaking on the development, Richard Teng, regional head of Asia stated, “By harnessing Binance’s expertise together with Gulf’s established local presence and network, the exchange aims to showcase the full potential of blockchain technology to meet the needs of Thai users.”

With Binance’s entry, the local crypto market, currently dominated by Bitkub, will have a competitive platform. For the record, the CZ-led trading firm is the largest digital asset exchange in the world by trading volume.

Notably, homegrown Bitkub’s market share increased by almost 75%, when its nearest rival and no 2 Zipmex filed for bankruptcy after the Terra Luna fiasco in mid-2022.

In addition, the harsh crypto winter wiped out investors’ funds, with Thai digital asset exchanges experiencing a 79% decline in trading volume in 2017, which finally contributed to the demise of the global exchange FTX.

Further, Teng said that Thai users “can expect access to a trusted and regulated service that prioritizes user security alongside compliance with local regulations” from Binance. 

Recently, the crypto behemoth declared that it would discontinue various trading pairs, including those for well-known coins like Cardano [ADA], Ripple [XRP], and Polygon [MATIC].

Binance Removed ADA, SHIB Trading Pair

The Shiba Inu [SHIB] token has also been impacted by this change, which is scheduled to go into effect on June 1, 2023, at 6:00 a.m. UTC.

The list of affected pairs also includes the newly delisted SHIB/AUD, XRP/AUD, MATIC/AUD, and ADA/AUD. Aside from these, trading pairs for AUD/BUSD, AUD/USDT, BNB/AUD, BTC/AUD, DOGE/AUD, ETH/AUD, and GALA/AUD will also be discontinued.

Continuing its expansion, Binance embarked on the NFT lending scene by rolling out a new feature that allowed users to borrow cryptocurrencies using NFTs as collateral.

According to sources, the Binance NFT marketplace presently allows borrowing of ether [ETH] against popular or “blue-chip” NFTs including Bored Ape Yacht Club [BAYC], Mutant Ape Yacht Club [MAYC], Azuki, and Doodles.

Ripple’s gift to Japan-Thailand remittance payments

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The cryptocurrency company Ripple has announced the beginning of a new cooperative effort with SBI Remit to speed up money transactions between Japan and Thailand. The project would enable Thais living in Japan to instantly transfer money home using RippleNet technology thanks to SBI Remit, the leading payment service in Japan. The Thai side in this endeavor will be represented by Siam Commercial Bank.

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Source: Twitter

According to the press release, in one second, the yen will be accessible for withdrawal in Thai baht in Thailand thanks to the implementation, which will enable more than 47,000 Thais living in Japan to transmit money freely using ATMs. Prior to this, a special agent was needed to complete the transaction, which was primarily made with cash.

Nobuo Ando, representative Director at SBI Remit, said,

“It is our duty to continuously search for superior technological solutions to deliver ever improving remittance services for our customers. With the steady rise of remittance flows, we see Ripple helping us open up new revenue potential for our business and a better overall experience for our customers.”

Asia welcomes Ripple with open arms

While Ripple is being fully utilized by Asian nations and businesses, that are integrating XRP into their operations, in the United States, the company is facing significant regulatory pressure from the Securities and Exchange Commission. However, it appears like Ripple chose to commit $100,000,000 to this and place everything in the hands of attorneys after discovering the rules of this “battle” in order to focus all of its resources and attention on its primary business.

In other news, according to a business representative, Ripple Labs Inc., which is involved in a well-known legal dispute with the U.S. Securities and Exchange Commission, is considering buying some of the assets of the defunct cryptocurrency lender Celsius Network. This announcement was made by the firm earlier this week.

Furthermore, according to Ripple’s most recent study, 76% of financial institutions worldwide would employ blockchain technology and cryptocurrencies by 2025, and the business obviously wants a bigger share of that market. From this perspective, it makes the most sense for Ripple to expand into Asia, which thanks to technology is currently one of the world’s most rapidly rising regions.

Zipmex To Move Court Against 2 Crypto Lenders

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Thai exchange Zipmex has disclosed that it filed suits against two embattled crypto lenders namely Babel Finance and Celsius Network in order to recover digital assets for its customers.

The latest development came after the platform had suspended trading for two hours of assets linked to Babel Finance and Celsius.

CEO of the trading platform Akalarp Yimwilai said that his firm had halted ZipUp+, a product of Zipmex Global, to protect the stability of its Thailand affiliate.

Refuting rumors of any trouble brewing between Zipmex Thailand and Zipmex Global, the exec revealed that the firms would instead join hands to collectively sue Babel and Celsius.

It all started when Singapore-based Babel paused the withdrawal of coins on June 17. Zipmex holds a discussion with Babel regarding asset recovery through lawyers. But the talks failed and this led to the decision of launching legal action against the Singapore firm.

Prior the this, the cryptocurrency exchange said recently in a Facebook post outlining the details of the amount of money it lent to the troubled crypto lenders.

According to the post, it has extended a loan amount of $48 million to Babel, with an additional $5 million to Celsius, which filed for bankruptcy last week.

Zipmex’s Loan Amount May Be As Much As $100M

Other anonymous sources put the amount to be at $100 million from a high-yielding program known as ZipUp to Babel, a claim denied by a Babel representative.

It needs to be reminded that both Babel Finance and Celsius had shut down withdrawals in June amid market volatility.

Zipmex, too hogged the headlines for freezing withdrawals and said that “resulting financial difficulties of our key business partners” amid market volatility was one of the reasons for the decision.

“Ever since the black swan events surrounding the crypto space, Zipmex has retrieved the majority of our funds and assets that were historically deposited with our deployment partners and has been actively working to resolve the situation for the remaining outstanding assets,” according to the statement.

Akalarp said the digital asset exchange resumed trading of 28 crypto coins on the night of 20th July, barring a few assets which still remain disabled.

Crypto Transfers in Thailand Will Be Exempt From VAT Until 2023

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Investors who move cryptocurrencies and digital tokens through Thailand exchanges will be eligible for a 7% VAT exemption on their transactions.

The tax break was enacted retroactively from April 1, 2022, according to a decree published in the Royal Gazette on Tuesday. According to local media, it will stay in effect until December 31, 2023.

The government approved the policy in March, and it applies to trading platforms that are registered with the Ministry of Finance. The judgment is now part of Thai law, as it takes effect the day after it is published in the official journal.

Thailand’s decision to promote cryptocurrency

The major goal of the tax exemption, according to the document, is to promote cryptocurrency trading on recognized exchanges, allowing crypto transactions to be regulated and supervised by appropriate authorities such as the Securities and Exchange Commission (SEC).

Thailand’s Finance Minister, Arkom Termpittayapaisit, is foolproof that the country’s cryptocurrency exchange will become more dependable and stable as a result of the reduced tax restrictions.

Ekniti Nititthanprapas, Director-General of the Revenue Department, noted that crypto trading would be easier for investors, who will benefit from fair tax treatment and secure transactions, while Thailand’s image in the global digital sector improves.

Another royal directive published on May 24 exempts transfers done with the retail central bank digital currency of Thailand’s monetary authority from VAT (CBDC).

In December, the Bank of Thailand said it would begin testing the CBDC as an additional payment option in financial institution-to-customer transactions in late 2022.

Thailand has seen a substantial increase in cryptocurrency investment and trade in recent years. The country’s financial regulators took efforts to prohibit the use of cryptocurrencies for payments in late March, citing the need to avert different financial and economic concerns, with the SEC releasing guidelines meant to deter digital asset operators from offering such services.

Thailand to Exempt 7% Tax on Crypto Trading

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Thailand’s Cabinet simplified tax laws for investments in digital assets on Tuesday to encourage and expand the business.

Finance Minister Arkhom Termpittayapaisith told a press conference that the regulations would allow traders to credit yearly losses against profits for taxes due on cryptocurrency investments. The new laws will also exclude cryptocurrency trading from a 7% value-added tax on recognized exchanges.

According to him, the tax exemption would include trading of retail central bank digital currency to be issued by the central bank from April 2022 to December 2023.

According to a ministry spokesman, Thailand’s digital assets have developed rapidly in the last year, with trading accounts increasing from 170,000 in January to almost 2 million by the end of 2021.

Thailand’s stance on cryptocurrency

Traders will be able to credit their yearly losses against profits for tax purposes, according to Finance Minister Arkhom Termpittayapaisith.

The Thai government enacted the new tax laws in response to a recent rise in cryptocurrency trading.

The new laws will provide traders with several benefits, including tax exemption, loss compensation, and increased crypto trading activity in Thailand.

The administration has been eager to support and assist the cryptocurrency industry development. In addition to lowering crypto taxes, the Cabinet has authorized tax benefits for startup investments.

Investors who have owned startup shares for more than two years will be eligible for tax deductions on the sale of their shares. The deal will last until 2032.

According to finance minister Arkhom Termpittayapaisith, the updated tax laws were intended to boost the embryonic digital asset market in Southeast Asia’s second-largest economy.

Thailand has become one of Asia’s most popular crypto destinations, thanks to the government’s crypto-focused policies and willingness to respond to criticism from ecosystem stakeholders.

The new tax regulations might serve as a model for other countries considering enacting some sort of crypto taxes.

After the Indian government declared a 30% tax on crypto holdings without accounting for dealers’ losses, Indian crypto traders have demanded something similar.

Thailand strips back from its plan of 15% tax on crypto gains

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After receiving criticism from dealers in one of Southeast Asia’s major digital currency exchanges, Thailand has stripped back from its plans to levy a 15 percent withholding tax on crypto transactions.

The new regulations will enable traders to credit their yearly losses against profits achieved in the same year. This furnished answers for the concerned individuals in the embryonic business who had worried that high tax would kill off a sector in its infancy.

On Monday, tax officials disclosed that persons who yielded revenue from crypto trading or mining might document these as capital gains on their income taxes.

“The tax department conducted a lot of investigation and went out to crypto operators as well to obtain feedback,” said Pete Peeradej Tanruangporn, chief executive of Upbit, a crypto exchange and co-chair of the Thailand Digital Asset Operators Trade Association.

“It is far more favourable to both investors and the industry.”

He added.

Thailand puts a smile on the investor’s face

Last week, the Bank of Thailand, its Securities and Exchange Commission, and its finance ministry disclosed intentions to establish regulatory guidelines to prohibit digital currency payments.

The authorities claimed that utilizing digital assets to pay for goods and services “would not significantly benefit consumers and businesses.” However, they stressed that they supported the development of financial technologies such as blockchain and were not restricting their investments.

Critics of the intended regulations have suggested they go too far. “Restricting crypto payments are unnecessary,” said David Carlisle, head of policy and public relations of Elliptic, a digital asset research and analysis organization. “With sufficient precautions in place, shops may accept crypto payments without introducing large and wide risks that cause harm.”

Thailand and India part ways

With the Thailand government showering happy news to the crypto investors in their nation, India does precisely the opposite. India’s decision to levy a hefty 30% tax on crypto gains has mixed feelings among investors. While some think this is an excellent initiative from the government’s end paving the way for crypto regulations, some believe that the government is looting the investors.

It’s hard to ignore that the 30% tax is indeed a monstrous decision. The Indian government had long kept its mouth shut when it came to deciding crypto regulations. Even when the laws were unclear, Indian investors kept pooling their money in crypto. Many think that the government played tactically by imposing the law at the right time.

HIP cafe in Thailand serves crypto advice & data with coffee

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HIP cafe, a cafe in Thailand, has recently drawn attention ever since its unique concept went viral on the internet. The cafe isn’t necessarily known for its food and coffee. Still, many customers and traders eagerly started coming in to feast their eyes upon dozens of tv screens showing the latest trends and prices on various cryptocurrencies. They have put up dozens of screens showing multiple coins, their price chart, and provide free cryptocurrency investment advice.

The cafe was founded in 2013. The number of customers has doubled since installing the crypto data screens in 2020. Customers who only visit during weekdays now come in numbers every day. The ideological concept has drawn a group of loyal customers who come regularly.

Apakon Putnok, a student, trader, and a regular customer said that “having so many screens helps a lot and when the market crashes, we immediately know and get to analyze the crashing factors”. “We also get to decide whether we should buy or sell”, he added.

Manager Oakkharawat Yongsakuljinda said that there are three types of customers who visit the cafe. The first includes the experts who come to build a community—secondly, the people who just started investing and want to meet new people. Thirdly, the ones who don’t know anything about crypto.

The HIP cafe provides free cryptocurrency investment consultancy and plans to start its own cryptocurrency.

Thailand and crypto

The Bank of Thailand (BOT), the Thai Securities and Exchange Commission (SEC), and the country’s Ministry of Finance (MOF) together announced Tuesday their proposal to regulate cryptocurrencies as a form of payment.

The three authorities noted that after analyzing the benefits and hazards of crypto assets, they “deem it important to regulate the usage of digital assets as a means of payment for goods and services, to prevent potential consequences on the country’s financial stability and economic system.”

With different countries, including India jumping on the bandwagon of regulating crypto as a means of payment, investors in Thailand can hope for the best. Ardor 2.1, a restaurant based in Delhi Connaught Place, is India’s first to accept cryptocurrency payment for their recently launched Digital Thali. The meals in this thali take their names from different cryptocurrencies. Not only this, if you pay using crypto, then you may enjoy a 20 percent reduction on your payment.

Thailand’s tourism authority could soon roll out the TAT utility token

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Cryptocurrencies have started to make the world dance to its tunes and Thailand just joined in. The crypto take-over didn’t spare anyone. While a few countries still remain hesitant towards the acceptance of crypto, the industry had managed to lure in an array of others. Thailand decided to further elevate its presence in the crypto-verse through its tourism authority.

The crypto industry has paved the way for the emergence of numerous coins and tokens. Governments across the globe seemed to like the idea of cryptocurrencies and hence decided to digitize their existing fiat and call it central bank-issued digital currencies [CBDC]. However, the Thai government took a leap and revealed that the Tourism Authority of Thailand aka TAT was thinking about formulating a utility token.

With Thailand known for its tourism, the pandemic caused immense loss to the country. The latest initiative could further boost the overall growth of the nation.

Thailand’s TAT utility token

The tourism authority reportedly intends to roll out the TAT coin and the idea is currently presented to the Stock Exchange of the country. The Bangkok Post noted that the emergence of this coin would be possible only after it undergoes the stringent regulatory system of the Thai financial watchdogs.

With the launch of this token TAT wants to transfer value while eliminating speculative trading. The functions of the coin would be limited to transferring vouchers into digital tokens. This process would introduce increased liquidity to the operators.

Emphasizing the emergence and impact of cryptocurrencies, the governor of TAT, Yuthasak Supasorn, noted that the agency would be making use of crypto in order to boost the competitiveness of the tourism supply chain. The latest initiative was reportedly a short-term plan to lure in travelers.

Additionally, the tourism authority’s long-term plan with regard to the TAT coin is to join hands with the crypto exchange, Bitkub, and further elevate its tourism field.

TAT’s Governor, Supasorn added,

“We have to prepare digital infrastructure and digital literacy for our tourism operators in order to commence cryptourism as the traditional business model might not be able to keep up with the new changes.”

Thailand’s financial watchdog halts Huobi’s operations in the country

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Thailand’s Securities and Exchange Commission went on to stop prominent cryptocurrency exchange Huobi from functioning in the region after it did not comply with the regulations put in place.

The crypto-verse has been heavily monitored by regulators from across the globe. As more and more people have been diving into the crypto market, regulators have started to take charge and be more stringent with regard to laws. The Thailand government seemed to be taking an extreme step after it encountered trouble with Huobi.

In a recent announcement, the Thai SEC revealed that it had temporarily halted Huobi from operating in the country. Alongside this, the financial watchdog hopes to revoke the crypto exchange’s license.

Thailand SEC hopes to revoke Huobi’s license

In the notice, the SEC pointed out that it had given Huobi exactly three months to give back its customers their respective assets. The Thailand SEC reportedly called out the exchange back in February 2021 for its breach of compliance. However, the exchange did not match the requirements put forth by the regulator. Despite this, the SEC went on to give Huobi an extension up until the end of August 2021.

The announcement further read,

“The SEC, in its meeting no. 15/21 on September 2, 2021, considered that Huobi did not modify the above work system to comply with the relevant rules as ordered by the SEC. .T. Even the SEC has extended the correction period several times as requested by Huobi, including the total amendment period of 5 months and 12 days. Huobi can’t fix it. It is a system that is important to business operations, such as a trading system, a customer asset retention system. and information technology systems. “

Additionally, the regulator intends to revoke the exchange’s license with the Ministry of Finance. This could make this temporary suspension a permanent one.

Bithumb falls into troubled waters after Thai partner calls out exchange for fraud

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A popular South Korean cryptocurrency exchange, Bithumb, is slapped with a lawsuit by a former partner based in Thailand.

Cryptocurrency exchanges have found their way below the crypto spotlight. As more people flocked into the market, exchanges were kept busy all the time. The increased demand for crypto this year further agitated this trend. Moving over the surge in popularity, a major crypto exchange fell under the purview of Hong Kong officials for breach of contract as well as fraud.

Back in 2018, Bithumb had reportedly rolled out a platform in Thailand. This platform, however, did not garner any support from the exchange, further paving the way for immense damages to the Thailand firm. While the firm’s name remains under the wraps, it had decided to sue the South Korean exchange for backing out.

Bithumb could be sued for breach of contract

As per a recent report by the Korea Times, the Thailand partner has been prepping to sue Bithumb Global Holdings, GBEX, and the executives involved.

Even though the BXA coin never made the cut, it was speculated that the platform was trying to sell BXA coins through its Thai partner. The former Thai partner elaborated on the same and pointed out that once the exchange pulled the plug on the BXA business, the Thai platform became unnecessary. This further caused the closure of the Thai firm and also some “serious damage.”

The spokesperson added,

“BGH and GBEX collectively own a 49-percent stake in the joint venture in Thailand, and are wholly-owned subsidiaries of Bithumb Korea, so we sued Bithumb Korea’s executives last year and decided recently to file lawsuits in Hong Kong against the Hong Kong subsidiaries and their executives, who are related to this issue more directly.”

The BXA coin put the exchange in the wrong light. The Seoul Metropolitan Police Agency’s Intelligent Crime Investigation Unit officers even went on to raid the exchange’s headquarters in Gangnam back in September 2020.