The world’s largest cryptocurrency exchange, Binance, encountered new obstacles in its efforts to commence operations in Thailand through a partnership with Thai billionaire businessman Sarath Ratanavadi’s Gulf Energy Development company. Penalties totaling $4.3 billion for money laundering and sanction violations, along with leadership changes, have overshadowed Binance’s expansion plans.
Binance and Gulf Energy Development’s joint venture to establish a cryptocurrency exchange in Thailand is facing regulatory challenges. According to Bloomberg, following the acceptance of allegations and penalties for money laundering and sanction violations amounting to $4.3 billion, a legal review has been initiated for the planned cryptocurrency exchange in Thailand.
The appointment of Richard Teng as Binance’s new CEO, with his prior experience in legal regulations, suggests another review situation that could delay the planned launch to next year.
Thai billionaire Sarath Ratanavadi, despite the regulatory hurdles, expresses his confidence in Binance’s reliability. Binance and former CEO Changpeng Zhao faced penalties, but they did not encounter accusations of misuse of customer funds or fraud.
Ratanavadi maintains optimism about the strength of Binance’s product offerings, systems, and security. Gulf Energy Development will have a 51% controlling stake in the planned cryptocurrency exchange, with Binance expected to be a minority shareholder. Experts believe that Binance’s recent ordeal is unlikely to affect the joint venture, which had already received regulatory approval for Digital Asset Operator Licenses from Thailand’s Ministry of Finance in May.