Binance Thailand Launch: Great for Locals, Not Accessible for Foreigners; No Bitcoin ETFs

Thailand’s crypto landscape is buzzing with activity! Binance recently launched Binance TH, a local exchange, creating excitement and raising questions about accessibility and regulatory stances. But before you pack your bags to trade crypto in Thailand, there are a few crucial things you need to know.

Binance TH: Great for Locals, Not So Much for Foreigners?

On January 16th, Binance Capital Management, in partnership with Gulf Innova, launched its long-awaited exchange, Binance TH Exchange, in Thailand. This was big news, signaling further expansion of Binance into the Southeast Asian market.

• The Catch: While the launch is significant, the exchange is currently only accessible to Thai nationals.
• Why? Registration and KYC (Know Your Customer) procedures require a Thai national digital ID (NDID).
• The Problem: The Thai government does not issue these digital IDs to foreigners residing in the country.

In short, if you’re a foreigner living in Thailand, you won’t be able to use Binance TH. Binance TH customer support confirmed this, stating: “After checking with the team, I’m afraid a foreigner Thai ID card is indeed currently not supported.”

See Also: Crypto Exchange Gulf Binance Is Now Open For Trading In Thailand

Thailand’s Crypto Stance: Crypto-Friendly or Crypto-Cautious?

Thailand is often touted as “crypto-friendly,” but the reality is more nuanced. Here’s a quick breakdown:

• Taxing Overseas Crypto Income: As of January 2024, the Thai government taxes income from overseas crypto trading.
• Local Focus: The Thai SEC actively encourages trading on local exchanges and brokerages.

No Bitcoin ETFs For Thailand (Yet?)

While the US has embraced spot Bitcoin ETFs, Thailand is taking a more cautious approach.

• Rejection of Spot Bitcoin ETFs: The Thai Securities and Exchange Commission (SEC) has stated it does not plan to allow asset management firms to launch spot Bitcoin ETFs.
• Timing: This decision came shortly after the launch of spot Bitcoin ETFs in the United States.
• SEC’s Reasoning: The SEC wants to ensure that foreign products offered to Thai investors have the same characteristics as products available locally. Since spot Bitcoin ETFs are not currently allowed in Thailand, they cannot be traded on local platforms.

The SEC stated that “securities companies can provide services to retail customers to invest in foreign products, but they must have the same characteristics as products that can be offered for sale in Thailand.”

See Also: Binance To Delist These 4 Trading Pairs On January 19th

The SEC would like to “monitor developments,” after having at least six months to prepare for the launches in the US.

What Does This Mean for Crypto Traders in Thailand?

Here’s a summary of the current situation:

• Binance TH: Accessible only to Thai nationals with a Thai national digital ID.
• Spot Bitcoin ETFs: Not currently permitted for trading in Thailand.
• Local Exchanges: The Thai SEC encourages trading on the nine licensed digital asset exchange operators currently providing crypto trading services in the country.

Analysts say nearly $10 billion has been traded on US spot BTC ETFs in the first three days, indicating a clear demand for the products.

Let me put into context how insane $10b in volume is in first 3 days. There were 500 ETFs launched in 2023. Today, they did a COMBINDED $450m in volume. The best one did $45m. And many have had months to get going. $IBIT alone is seeing more activity than the entire '23 Freshman… https://t.co/wV1zQFtPW1

— Eric Balchunas (@EricBalchunas) January 16, 2024

Key Takeaways

• Regulations Matter: Crypto regulations vary significantly from country to country. Don’t assume a “crypto-friendly” label means unrestricted access.
• Local Compliance: Always ensure you comply with local regulations when trading crypto.
• Stay Informed: The crypto landscape is constantly evolving. Keep up-to-date with the latest news and regulatory changes in your region.

While Binance TH’s launch is a positive step for the Thai crypto market, its inaccessibility to foreigners and the SEC’s stance on Bitcoin ETFs highlight the complexities of navigating the global crypto regulatory landscape. Stay informed, trade responsibly, and always be aware of the local rules!