- Kucoin has made its way into Thailand, which has shown a growing interest in digital assets, despite its tightly regulated market.
- This was made possible through the purchase and rebranding of ERX Company Ltd, the first crypto platform in Thailand.
- The Thai crypto space is highly competitive, with eight other exchanges licensed by the country’s SEC also operating within the space.
According to reports, Kucoin, one of the largest centralized exchanges in the world is expanding its global footprint. The exchange has made its way into Thailand, which has shown a growing interest in digital assets, despite its tightly regulated market. This move comes as a big deal for Thailand, crypto, and Kucoin as crypto expands further into Southeast Asia, where competition is strong and regulations are changing quickly.
KuCoin’s Entry Through ERX Rebranding
On April 23, KuCoin officially marked its entry into the Thai crypto market by acquiring and rebranding ERX Company Ltd — the pioneering cryptocurrency platform in Thailand.
ERX Company, now Kucoin Thailand, is regulated by the country’s Securities and Exchange Commission and offers digital asset trading services to citizens. According to Att Tongyai Asavanund, the CEO of ERX, the goal is to deliver solutions that align with the market’s needs.
He stated in the official announcement,
“We’re enhancing our capacity to deliver customized solutions that truly resonate with the needs of the Thai market.”
As part of the transition, existing ERX users have been migrated automatically onto the KuCoin Thailand platform, and the new app is available for download on all mobile platforms.
A Tight Market with Strong Competition
Thailand is a land of opportunity for Kucoin. However, the exchange isn’t simply walking into an open field. Instead, the Thai crypto space is highly competitive, with eight other exchanges licensed by the country’s SEC also operating within the space.
Some of the key players in Thailand’s crypto market include Bitkub Online, Gulf Binance, Upbit, and the Thai Digital Assets Exchange (TDX), among others. Bitkub stands out as the dominant exchange, boasting an average daily trading volume of roughly $70 million—significantly surpassing many of its local rivals, and posing a substantial challenge for KuCoin.
While KuCoin brings a massive global footprint, handling around $3.8 billion in daily volume across its international operations, trading volume alone won’t ensure success in Thailand. To thrive, KuCoin will need to set itself apart through superior user experience, a wider range of assets, localized customer support, and meaningful partnerships with Thai businesses.
A Mix of Opportunity and Restraint
As it stands, Thailand is both promising and tricky when it comes to crypto. On one hand, there is a strong demand for crypto, and the Thai population is strongly tech-savvy. However, the regulations in the region can be strict, which stands as a major barrier to growth. For example, 2022 saw the Bank of Thailand ban the use of crypto for payments because digital assets “pose risks to financial stability and consumer protection.”
Although there are still challenges, Thailand has not lost interest in crypto trading. The government has also been toying with more crypto friendly measures for example an earlier pilot project in Phuket to allow tourists to pay in Bitcoins.
Despite not yet being operational as the initiative is still in development, this does however serve to show the country’s changing attitude. KuCoin, positioning itself as a fully compliant option, aims to stand out among Thailand’s existing crypto exchanges and attract local users.
