KBank denies reporting Binance deal
Local exchanges nervous about giant
published :20 Jan 2022 at 06:55
Kasikornbank (KBank) denied announcing a partnership with Binance, the world’s largest digital exchange, saying it is interested in establishing and investing in digital asset businesses, but has not decided on how to proceed with such projects.
Binance recently announced a partnership with Gulf Energy Development Plc (Gulf) to study the feasibility of establishing a digital exchange in Thailand.
Peeradej Tanruangporn, chief executive of digital asset exchange Upbit Thailand, said Binance has been trying to penetrate digital asset markets in Southeast Asia and around the world.
He said cooperation between Binance and Gulf is not yet solid and with KBank’s denial, traders should wait to determine if Binance is able to launch a digital exchange in the Thai market.
Mr Peeradej said Binance may find it difficult to apply for a licence from the Securities and Exchange Commission (SEC) on its own, requiring cooperation with local businesses to penetrate the market.
Binance attempted to enter the Singapore market about five months ago, but failed owing to its opaque customer vetting process.
Peer-to-peer businesses can sometimes be viewed as unsafe by regulators as their processes are not verifiable by authorities.
In a similar vein, Binance was charged by Thailand’s SEC last year for operating a domestic assets programme without a licence.
Commercial banks and digital asset exchanges, including Upbit Thailand, are continuing to negotiate with possible partners.
Zipmex Thailand’s chief executive Akalarp Yimwilai said local digital asset exchange operators would suffer if Binance successfully enters the market because it is a global leader with more experience and investment products.
“Whichever company can provide good, convenient service at a low cost will get the majority of customers,” said Mr Akalarp.
He said the entry of Binance will undeniably increase competition in the industry, giving customers more choices.
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