KuCoin, a big name in cryptocurrency, is making a move into Thailand’s crypto market. This expands their presence in Southeast Asia significantly.
A New Platform Emerges
On April 22nd, KuCoin officially launched its Thai platform. This happened through a rebranding of ERX Company Ltd, a company already licensed by the Thai Securities and Exchange Commission (SEC). All existing ERX users were automatically transferred to the new KuCoin Thailand platform, and a new KuCoin TH app is available for Android and iOS. The CEO of ERX, Att Tongyai Asavanund, stated their goal is to provide crypto services tailored to Thai users.
A Competitive Landscape
Thailand is a pretty active crypto market, despite a ban on using crypto for payments. KuCoin is entering a market with several established players, including Bitkub (the leading exchange with daily trading volumes around $70 million), Gulf Binance, Upbit Exchange, and WAAN Exchange. While KuCoin globally boasts a much larger daily trading volume (around $3.8 billion), success in Thailand will require more than just global size.
Tough Regulations
Thailand’s crypto regulations are quite strict. While trading is allowed, the use of crypto for payments is banned, and regulations have become stricter recently. The government recently cracked down on overseas peer-to-peer crypto services to combat scams and money laundering. This means even licensed platforms like KuCoin Thailand will face close scrutiny.
Global Challenges
While expanding into Thailand, KuCoin is also dealing with legal issues in the US. The Commodity Futures Trading Commission (CFTC) sued KuCoin in March 2024 for alleged violations. KuCoin is working towards a settlement. This highlights the challenges crypto exchanges face with multiple regulatory bodies worldwide.
