UpBit, the South Korean crypto exchange that has struggled in its home market, won full operating licenses from Thailand's Securities and Exchange Commission. The exchange received four separate licen
UpBit, the South Korean crypto exchange that has struggled in its home market, won full operating licenses from Thailand's Securities and Exchange Commission. The exchange received four separate licenses to run in Thailand after Korean regulators tightened requirements for domestic platforms.
Korea's new rules required UpBit to partner with a domestic bank, K Bank, if it wanted to continue handling Korean users' fiat deposits and withdrawals. Korean banking law prohibits foreigners from opening online-only accounts, which forced UpBit to cut off non-Korean users from its fiat services. The restriction left the exchange seeking operations elsewhere.
UpBit received licenses for four services: cryptocurrency exchange, digital token exchange, cryptocurrency broker, and digital token broker. The company became the first digital asset business to secure all four provisional licenses in Thailand.
The Thai SEC approved UpBit alongside 13 other crypto service providers that same month. Huobi, the Chinese exchange, received approval as well.
Peeradej Tanruangporn, who runs UpBit Thailand, explained the licensing structure: "In Thailand, there are separate licenses for exchange and brokerage businesses. An exchange license allows a business to do order matching. A brokerage license allows operators to take a customer's order to another exchange for order matching."
UpBit isn't operational yet but will function as a fiat-to-crypto exchange once it launches.
Thailand has also been developing its own digital currency. The central bank is running trials of a central bank digital currency, now in its third phase. The central bank is testing the CBDC for business-to-business transactions before moving to consumer use.
Vachira Arromdee, an assistant governor at the Bank of Thailand, said: "After that, we plan on moving into the fourth phase by expanding to retailers, but this phase will require a cautious study of both pros and cons…The central bank is also thinking about expanding use of the cryptocurrency to the general public, but a comprehensive study must be completed before taking such action."
Thailand's regulators have approved multiple crypto service providers and are advancing central bank digital currency trials, making digital finance a growing part of the nation's economic strategy.
