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Binance is reportedly facing challenges in Thailand ahead of its plans to launch a new crypto platform with billionaire Sarath Ratanavadi’s Gulf Energy.
The beleaguered exchange, which is currently facing criminal charges and civil lawsuits in the US, is under scrutiny in Thailand.
The regulatory challenges have risen in the jurisdiction due to Binance’s recent incidents including a $4.3 billion settlement with the US authorities and CEO Changpeng Zhao’s guilty plea and stepping down from the board.
Per Bloomberg, Sarath Ratanavadi said that Binance wasn’t accused of fraud or misappropriating customer assets in the US settlement. Gulf Energy holds a 51% stake in the planned crypto exchange, while Binance holds the minority stake.
“Binance grew extremely fast and so probably crossed paths with some regulations. We have much more confidence in its credibility after this storm, which should make it a lot stronger.”
The domestic Binance-Gulf Energy joint venture would likely delay its launch, following the scrutiny. The global exchange is now headed by CEO Richard Teng, former chief executive of the Abu Dhabi Global Market.
Ratanavadi noted that Thailand’s regulator Securities & Exchange Commission is “very strict” and asked a lot of questions about Binance, before approval. He added that his firm chose Binance due to its market-leading position.
Simultaneously, Binance is also undergoing an accusation from the Philippines’ Securities and Exchange Commission for operating without a license. The regulator noted that the world’s largest crypto exchange lacks authorization to sell securities in the country.
The regulator issued a warning to Filipinos on Wednesday to exercise utmost caution while dealing with such unregistered exchanges.
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