KuCoin Expands Into Southeast Asia
KuCoin, a cryptocurrency exchange with global reach, is expanding its footprint in Southeast Asia by establishing operations in Thailand amid a burgeoning crypto landscape. On April 23rd, the exchange revealed its intention to roll out a platform that will provide access to various digital assets and associated services tailored for Thai users.
Rebranding and New Developments
Notably, effective April 22, ERX Company Ltd, which holds the distinction of being Thailand’s pioneering digital token exchange under the supervision of the local Securities and Exchange Commission (SEC), has undergone rebranding to become KuCoin Thailand. This transition follows ERX’s recent acquisition of a license to operate as a cryptocurrency exchange from Thai financial authorities.
Att Tongyai Asavanund, the CEO of ERX, stated, “We are enhancing our capacity to deliver market-specific solutions that cater directly to the needs of Thai consumers.”
Users who were previously on the ERX platform have been seamlessly transitioned to KuCoin Thailand, and a dedicated mobile application, KuCoin TH, is now available for download on both Android and iOS devices.
Market Competition and Government Initiatives
The launch of KuCoin comes at a time when the Thai crypto exchange market is not lacking in competition, with eight other platforms currently licensed to conduct operations. This includes Bitkub Online, which leads the market with an impressive daily trading volume nearing $70 million, based on information from CoinGecko. In contrast, KuCoin’s international exchange purports to handle approximately $3.8 billion in daily trading volume globally.
Furthermore, the Thai government introduced a pilot initiative in January allowing tourists to utilize Bitcoin for payments within a controlled environment on Phuket island, but this project has not yet been implemented. While cryptocurrency trading maintains its popularity among Thai investors, the central bank prohibited the use of digital assets for payment purposes back in 2022.
Adding to the existing scrutiny, Thai financial regulators recently intensified their focus on foreign peer-to-peer crypto platforms in an effort to mitigate potential scams and anti-money laundering activities.
KuCoin’s Legal Challenges
In the backdrop of these developments, KuCoin is also in the process of addressing legal issues with the U.S. Commodity Futures Trading Commission, stemming from a lawsuit filed in March 2024, which alleges violations of the Commodity Exchange Act.
