Binance Launches Operations in Thailand, Challenging Local Market Dominance
Global cryptocurrency exchange Binance has officially commenced operations in Thailand, opening its platform, Binance TH, to all eligible users in the country. This move marks a significant expansion into the Southeast Asian market, where Binance will compete with established exchanges like Bitkub in Thailand and others such as Coinbase, Zipmex, and Gemini in the broader region.
The primary competitor of Binance TH in the Thai market is Bitkub, which commands around 77% of the market share. Bitkub has a daily volume of about $30 million, with the Thai baht and Tether (USDT) pair being the most traded on the platform.
Joint Venture with Gulf Energy
Binance’s entry into the Thai market is through a joint venture with Gulf Energy Development, a leading Thai energy company. The collaboration, known as Gulf Binance, has been in the works since early 2023, with the exchange obtaining the necessary licenses from Thailand’s Ministry of Finance in May 2023. The strategic partnership aims to leverage Gulf Energy’s extensive network within Thailand to facilitate the growth of Binance TH.
Regulatory Compliance and Services
Binance TH has been approved by the local Securities and Exchange Commission, ensuring compliance with Thai regulations. Initially launched on an invitation-only basis, the platform has now opened its doors to the general public, offering digital asset exchange services with Thai baht trading pairs and integration with local banks. However, the exchange is currently not available to foreigners residing in Thailand, as it requires a Thai National Digital ID for Know Your Customer (KYC) procedures.
Market Impact and Future Plans
The launch of Binance TH is expected to shake up the local crypto exchange market, which has been dominated by Bitkub. Binance’s entry could foster competition and innovation within the sector. While the platform is starting with spot trading services, Binance has indicated ambitious long-term plans for its Thai operations, including close collaboration with regulators to expand its offerings.
Commitment to Security and Inclusion
Binance’s CEO, Richard Teng, emphasized the company’s commitment to security, transparency, and service quality, highlighting the potential of blockchain technology and digital assets to promote financial inclusion. The launch of Binance TH is seen as a strategic step forward for Thailand’s role in global digital finance.
Trading Fees on Binance Compared to Other Exchanges in Thailand
Binance TH, like other Binance platforms, uses a tiered trading fee structure based on the user’s 30-day trading volume. Its global platform typically charges a maximum of 0.1% per trade for users at the lowest tier, with the rate decreasing for higher-volume traders.
Bitkub, the leading exchange in Thailand, charges a flat fee of 0.25% per trade. Upbit, another competitor, also uses a flat fee of 0.25% for its BTC and USDT markets. Coinbase, on the other hand, uses a maker-taker fee model, with fees ranging from 0.05% to 0.60% depending on the order type and the user’s trading tier.
Conclusion
In conclusion, Binance’s expansion into Thailand represents a significant development in the Southeast Asian cryptocurrency landscape. With its commitment to regulatory compliance and strategic partnerships, Binance TH is poised to become a major player in the region’s digital asset market.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
