Binance and Thailand's Gulf Energy Development announced Monday the establishment of a crypto exchange.
Gulf Energy stated in a stock exchange filing that its collaboration with Binance - one of the largest cryptocurrency exchanges in the world in terms of trading volume - is a response to Thailand's rapid growth in digital asset infrastructure.
Binance disclosed that it would set up a cryptocurrency exchange and associated businesses in the country. Gulf Energy is the entity founded by billionaire Sarath Ratanavadi.
Gulf Energy, a publicly traded holding company, informed the Thai Stock Exchange Monday that its subsidiary Gulf Innova is exploring the possibility of collaborating with Binance to build a digital asset exchange.
Gulf Energy anticipates considerable expansion in Thailand's digital infrastructure, with crypto playing a "significant part" in addressing the country's expectations.
"Our goal is to work with the government, authorities, and innovative enterprises to grow Thailand's cryptocurrency and blockchain ecosystem," a Binance representative stated.
The Thai energy business has been diversifying its operations and acquired a majority stake in Intouch Holdings Pcl, the parent company of the country's largest cellphone operator, Advanced Info Service PCL, last year.
Binance exchange was issued a criminal complaint by Thailand's authority last year for operating without a license.
Thailand's Securities and Exchange Commission issued a letter in April last year warning the crypto exchange about its unlawful digital asset exchange activity, but received no response.
As a result of this, the SEC filed a criminal complaint with Thai authorities.
Despite the allegations against Binance, users continue to trade on the platform, questioning the government's ability to prevent them, according to a Bangkok Post story.
The SEC's complaint against Binance included a two- to five-year prison sentence, a fine of 200,000 to 500,000 baht ($6,000 to $15,000), and extra fines of up to 10,000 baht for each day the violation continued.
It is uncertain whether or not Binance paid a penalty.
Despite this, Binance's Thai Binance Facebook group continues to grow to over 250,000 members.
Binance has been under increased regulatory scrutiny on a global scale.
It was the subject of an anti-money laundering investigation in the United States, while banks such as Barclays and Santander stopped fiat withdrawals from the exchange following a warning from the Financial Conduct Authority.
Thailand has taken a "slow and steady" approach to adopting cryptocurrency as legal cash. The country has issued a selective cryptocurrency trading ban, specifically targeting meme coins like Dogecoin and non-fungible tokens.
