Business partnerships and ventures are important in crypto as they indicate where and when major moves might take place in the near future. That said, several signs are pointing to one particular location at the moment. So what is this country and why is it so special?
Time to curry favor
Thailand may not be the first name that comes to mind when listing out crypto hubs. However, there are plenty of factors that make the case for it.
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First and foremost, the Thai administration reportedly decided to trash its proposed 15% tax on cryptocurrency capital gains. This showed the power that crypto investors had when it came to industry-specific policies in their country. Thus, making it an attractive location for entrepreneurs.
Adding to that, data from Finbold revealed that slightly more than 20% of Thailand’s internet users had cryptocurrency holdings, attesting to a high level of adoption. By comparison, only 12.7% of US-based internet users had crypto holdings. From that perspective, it makes sense for a crypto exchange with a global presence like Binance to show an interest in this market.
Yet another factor in Thailand’s favor is that its electricity prices are relatively cheap, when compared to those of the USA. This makes it an attractive destination for future mining ventures.
Always “Thai” your best
Reuters reported that Binance and Thailand’s energy producer Gulf Energy Development Pcl were in the process of finalizing a joint venture for the second quarter of 2022. If the deal is cemented, the two parties will have to approach regulators for licenses.
It’s important to remember that in 2021, the Thai SEC filed a criminal complaint against Binance since the exchange reportedly operated without the required licenses. While Thailand might offer a plethora of favorable factors for crypto businesses, investors need to see whether Binance’s thorny relationship with regulators worldwide will be a stumbling block this time.
Cub strikes out on its own
Thailand’s Bitkub enjoyed the reputation of being the country’s largest crypto exchange. However, Bitkub founder Topp Jirayut Srupsrisopa shared plans to expand the company’s operations to other countries in Southeast Asia. However, Bitkub was reportedly looking for a country where there were no “clear winners,” so it could [presumably] be one.
If the Binance-Gulf Energy Development deal goes through, it’s possible that Binance might expand through Southeast Asia as well, albeit more aggressively.