Binance Backs Thai Bitcoin Dreams - But There's a Catch!

Former Thai PM Thaksin Shinawatra proposes Bitcoin payments, with Binance offering support while emphasizing the need for careful risk assessment. Binance advocates for sandbox approach to test crypto payments, allowing regulatory monitoring while businesses gain practical experience. Despite crypto restrictions in Thailand, Binance successfully established operations through Gulf Energy partnership, becoming Southeast Asia's first licensed exchange.

Thailand's former Prime Minister Thaksin Shinawatra has expressed interest in initiating Bitcoin payments. Expressive support for the proposal, Binance, the world's leading cryptocurrency platform, also emphasizes the need for the Bank of Thailand to assess the risks thoroughly.  

A local source reported that the Exchange believes the initiative would boost Thailand's competitiveness and attract tech-savvy tourists. Sharing common ground is Nirun Fuwattananukul, CEO of Gulf Binance, who hailed Thaksin's suggestion as a positive step for the digital asset industry.

It reflects the momentum of global crypto adoption and demonstrates that leaders at the highest level are embracing these transformative technologies. As more countries adopt digital assets and cryptocurrencies, Thailand must not be left behind.

Meanwhile, Binance has cautiously welcomed the move, underscoring the critical need for banks to assess the potential risks associated with Bitcoin payments. This includes volatility, security concerns, and regulatory challenges.

To mitigate these risks, the exchange advocates for a sandbox approach that allows for close monitoring and assessment by regulatory authorities while providing businesses and consumers with practical experience.

Additionally, the proposed initiative will require careful consideration of currency controls, capital flows, and monetary policy. This would thus entail close collaboration between various stakeholders, especially between the Bank of Thailand and the SEC. Key considerations include consumer protection, anti-money laundering measures, and maintaining financial stability.  

Thailand's Bitcoin Dilemma

While Bitcoin payments are gaining traction in countries like the US and Japan, Thailand operates under a restricted currency system. The Bank of Thailand currently prohibits the use of Bitcoin and other cryptocurrencies for payments.

Binance TH, a subsidiary of Gulf Binance, received the green light from Thailand’s SEC to operate a crypto exchange and brokerage in 2022. At the time, it became the first crypto exchange to secure a permit in Southeast Asia, thanks to the partnership with Gulf Energy Development, one of Thailand’s largest private power producers.

The exchange began its operation in Thailand 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.