Binance, the largest cryptocurrency exchange, has launched a joint venture (JV) with Gulf Energy Development (Sarath Ratanavadi) to seek a licence in Thailand to operate as a digital asset trading platform. Binance and Gulf Energy Development formed a collaboration in response to the rising demand for cryptocurrency in Thailand. Furthermore, it has been rumoured that Gulf Energy will make an investment in BNB (Binance Coin).
Gulf Energy announced in a regulatory filing to the Thai Stock Exchange:
“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.”
Gulf International Investment Limited
Gulf Energy stated in March 2022 that it would establish a subsidiary, Gulf International Investment Limited, to invest in digital enterprises outside of the country.
“Gulf Energy Development Public Company Limited (the ‘Company’) would like to provide notification to the Stock Exchange of Thailand that the Company has established Gulf International Investment Limited, a subsidiary in which the Company holds a 100% equity stake with a registered capital of USD 100,000, to operate and invest in digital infrastructure, digital assets, blockchain technology businesses and other related services, including investment in funds that invest in the aforementioned assets and businesses, in foreign countries.”
Thailand’s Crypto Taxation
Initially, the Thai government proposed levying a 15% tax on cryptocurrency revenues. However, the proposed 15% taxation plan was withdrawn as a result of the negative reaction from the Thai people. Until the end of 2023, crypto dealers will not have to pay 7% VAT if they trade on government-approved exchanges.
In 2021, the number of crypto accounts in Thailand is expected to reach approximately 170,000. The figure increased to 2 million in January 2022, demonstrating the high demand for cryptocurrency.
