Binance, one of the largest crypto exchanges, is teaming up with Gulf Energy Development Pcl, owned by billionaire Sarath Ratanavadi, to launch a new digital asset platform in Thailand. The joint venture has received the necessary licenses, but Binance’s recent guilty plea and $4.3 billion in penalties for violating US anti-money laundering and sanctions laws have raised concerns.
Regulatory Scrutiny
Binance’s regulatory woes have intensified in recent months, with the company pleading guilty to violating US anti-money laundering and sanctions laws. The move resulted in a $4.3 billion fine and a commitment to improve compliance and transparency. The news has cast a shadow over the planned Thai digital asset platform, which will compete with other licensed operators in the country.
Partnership with Gulf Energy Development PCL
Sarath Ratanavadi’s Gulf Energy Development Pcl is one of Thailand’s richest men, with an estimated net worth of $11 billion. The partnership between Binance and Gulf Energy Development Pcl will see the latter own a 51% stake in the joint venture, while Binance will hold the remaining 49%. The new platform is expected to launch in January 2023.
Tighter Regulatory Oversight
Despite the decline in demand, some Thai businesses are backing a revival of cryptocurrencies. Kasikornbank Pcl, one of the country’s largest lenders, acquired a licensed crypto exchange operator last month. Sarath Ratanavadi also highlighted the need for tighter regulatory oversight to restore investor confidence following last year’s digital asset rout and bankruptcies such as FTX’s debacle.
“Crypto grew at a pace that was hard for regulations to keep up with. Officials have since tightened rules and corrected business practices, and all market participants have to follow the new regulations.”
Sarath Ratanavadi
Binance’s new Thai venture faces challenges, including regulatory scrutiny, reduced demand, and increased competition. However, the company is confident that its partnership with Gulf Energy Development Pcl and tighter regulatory oversight will help restore investor confidence in Thailand’s cryptocurrency market.
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