Thailand is making headway in the race to establish regulations to protect investors and allow innovation in the crypto space.
Two institutions, the Lao Digital Assets Exchange (LDX) and Bitqik have received approval from the Bank of Lao to offer brokerage and trading services in cryptocurrencies and digital assets within Laos and the region. The two institutions had to fulfill specific cybersecurity and client protection requirements. The announcement took place at the Joint Development Bank (JDB) in the capital Vientiane on Jan. 14, 2021.
The Bank of Lao Payment Systems Department director-general Soulysak Thanuvong discussed the selection process, noting that over 30 applications to launch cryptocurrency trading services had been submitted. The JDB board chairman opined that the institution of crypto trading services could attract money into Laos, contribute to the country’s development, and pay capital gains taxes to the government.
The Bank Of Lao Governor is confident that their process in conjunction with the business community and government-related agencies will protect investors. There are measures in place to protect the economy from potential risks that cryptocurrencies could pose.
The bank is committed to ongoing consultation with both exchanges to develop the regulations and protect investors.
Lao Digital Assets Exchange is a joint venture between the AIF Group and the Phongsupthavy Group and Bitqik, a subsidiary of the Simuong Group. Both companies will begin doing business in April 2022.
Binance eyeing Thai market, despite history
Binance has announced a partnership with Gulf Energy Development in other Thai crypto news. This comes as growth in Thailand’s digital infrastructure is anticipated. The two companies will explore the feasibility of establishing a crypto exchange in Thailand, said Gulf Energy. Gulf Energy is one of Thailand’s most significant power producers, and the partnership will be its first foray into crypto.
Bitkub 2022 expansion plans
In Nov. 2021, Siam Commercial Bank acquired a 51% stake in BitKub for $538.7M. Bitkub wants to increase its customer base to seven million and expand internationally in 2022. In 2022, the company plans to concentrate its security and product development efforts. Bitkub enjoyed success in 2021 due to Bitcoin’s surging price. This established Bitkub as the largest digital asset exchange in Thailand. The company also wishes to list more than 100 digital assets and improve customer satisfaction. In line with the requirements of the two registered exchanges, Bitkub is resolute in its quest to protect investors.