Binance, the largest cryptocurrency exchange in the world, has created a joint venture with Gulf Energy Development, owned by billionaire Sarath Ratanavadi, and will apply for a license to run a digital asset trading platform in Thailand.
The partnership, which was first announced in January, comes as the Southeast Asian country’s desire for cryptocurrencies and other digital assets grows.
“The company believes that this multi-level cooperation with Binance,”
“which is the global leader in blockchain infrastructure technology, is aligned with the company’s target”
” to be the leader in digital infrastructure while providing further opportunities for the company”
” to expand into other digital asset-related initiatives in the future,”
So, Gulf Energy says in a regulatory filing to the Stock Exchange of Thailand.
Gulf Energy has agreed to invest in BNB separately from the joint venture in Thailand (often called Binance Coin). Which is a cryptocurrency created by the exchange that allows users to access utilities throughout its blockchain, as well as an investment in Binance.preferred US’s shares.
With investments in renewable energy, toll road projects, and telecommunications, Gulf Energy, one of Thailand’s largest power producers, has been diversifying its portfolio.
In October, the company announced that it had secured an agreement with Singapore’s Singtel to create a data center business in Thailand.
It came after Gulf Energy purchased more shares of Intouch Holdings, Thailand’s largest mobile phone operator, a few months ago.
Binance, the cryptocurrency exchange founded by billionaire Changpeng Zhao, sometimes known as CZ, and fellow cofounder He Yi in 2017, is growing in Thailand as regulators tighten their grip on the embryonic industry.
The country’s central bank announced in December that it was contemplating legislation to regulate the use of cryptocurrencies as a form of payment, a move aimed at reducing the dangers digital assets pose to financial stability while also providing some investor protections.
The Securities and Exchange Commission of Thailand has already filed a criminal case against the crypto giant for operating without a license, which was submitted in July.
Two to five years in prison and a fine of up to 500,000 baht ($14,854) are the penalties for this offense. Binance previously stated that the platform was not aggressively seeking members in Thailand.
Binance has been growing its presence in the Middle East, obtaining different licenses in Abu Dhani, Bahrain, and Dubai recently. (It’s worth noting that Binance recently made a strategic investment in Forbes)
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