- Former Thai Prime Minister Thaksin Shinawatra is proposing Bitcoin payments, with Binance offering support while emphasizing the need for careful risk assessment.
- Binance advocates a sandbox approach to testing crypto payments, allowing for regulatory oversight while companies gain practical experience.
- Despite crypto restrictions in Thailand, Binance successfully established its operations through the Gulf Energy partnership, becoming the first licensed exchange in Southeast Asia.
Former Thai Prime Minister Thaksin Shinawatra has expressed interest in launching Bitcoin payments. Expressive support for proposalBinance, the world’s leading cryptocurrency platform, also highlights the need for the Bank of Thailand to thoroughly assess risks.
A local source reported that the bourse believes the move would boost Thailand’s competitiveness and attract tech-savvy tourists. Sharing common ground was Nirun Fuwattananukul, CEO of Gulf Binance, who hailed Thaksin’s suggestion as a positive step for the digital assets sector.
This reflects the dynamics of global crypto adoption and demonstrates that leaders at the highest levels are embracing these transformative technologies. As more countries adopt digital assets and cryptocurrencies, Thailand must not be left behind.
At the same time, Binance greeted the move cautiously, emphasizing the crucial need for banks to assess the potential risks associated with Bitcoin payments. This includes volatility, security concerns and regulatory challenges.
To mitigate these risks, the exchange advocates a sandbox approach that allows close monitoring and evaluation by regulators while providing businesses and consumers with hands-on experience.
Additionally, the proposed initiative will require careful consideration of exchange controls, capital flows and monetary policy. This would therefore imply close collaboration between the different stakeholders, in particular between the Bank of Thailand and the SEC. Key considerations include consumer protection, anti-money laundering measures and maintaining financial stability.
Thailand’s Bitcoin Dilemma
While Bitcoin payments are gaining ground in countries like the United States and Japan, Thailand operates under a restricted currency system. The Bank of Thailand currently prohibits the use of Bitcoin and other cryptocurrencies for payments.
Binance TH, a subsidiary of Gulf Binance, received the green light from the Thai SEC to operate a cryptocurrency exchange and brokerage in 2022. At the time, it became the first cryptocurrency exchange to obtain a permitted in Southeast Asia, thanks to the partnership with Gulf. Energy Development, one of Thailand’s largest private electricity producers.
The exchange began operations in Thailand in the fourth quarter of 2023 as a 51-49 joint venture with Gulf Innova, the fintech arm of Gulf Energy, which invested $20 million for a 0.4% stake in the US operations of Binance.
