Binance may have experienced a bit of a snag with its previous global expansion approach to first establish its presence in a country and then later comply with regulations. As it caught up, the cryptocurrency exchange giant twisted strategies and worked closely with regulators to develop a legal framework and establish trust. The latest one on Binance’s multinational checklist was Southeast Asian Cambodia.
As per Binance’s official press release, the exchange, with the Securities and Exchange Regulator of Cambodia [SERC], will work together to develop the security sector in the country. It also signed a Memorandum of Understanding [MoU] with the regulators and will share technical knowledge and experience on digital asset operations.
It also mentioned two other ways in which it will help strengthen the digital asset environment in the country.
Binance to support the development of the legal framework for the regulation and strengthening of the digital asset businesses in the country.
Binance to do proper training on digital assets for the region. ”
The regulatory clarity in Southeast Asian countries still lacks clarity, just as in the rest of the world. Binance’s vision to work with regulators, however, offers an edge in the competitive centralized exchange business. Therefore, when the country decides to accept digital assets as a legal entity, Binance will be the first in line to serve the customers.
This signing followed French regulators who cleared a Binance subsidiary to offer digital asset services in May. With a green light from France, Binance can expand further into Europe. Although the UK has remained cautious about its operations and the entirety of the cryptocurrency space, other countries’ approval could also sway the no-sayers.
Binance in Southeast Asia
Meanwhile, while Binance continues to build bridges in Southeast Asia, the company’s head of the Asia-Pacific market believed it was an appropriate time to rebuild the industry with strong players. According to reports, Leon Foong remarked,
“Although there is now some market correction, it will be a time of greater resilience. The projects that survive are the ones that will be here for the long term. We want regulators to see that resilience so that they can have comfort and clarity about regulating this new asset class. ”
Binance is currently working on the launch of a Thai exchange through a joint venture with Gulf Energy Development. Meanwhile, Thai regulators have granted only eight digital asset licenses. Still, with Binance’s approach to appeasing the regulators, it might get on the list, and Foong was also confident about this strategy.
“It helps to have a strong local partner with investments in key strategic infrastructure such as telecommunications and energy, and has the appetite to secure their business model future.”
Thailand banned crypto as payments in April, but promoted crypto as an alternative investment. Major players in the country like Bitkub, a cryptocurrency exchange, handle more than 90% of the trading volume, which will be difficult to challenge. However, Foong said Binance “sees other players in the space as partners” and will contribute to Binance’s growth.
I added,
“We do not believe that in any market where penetration is below 10%, [monopoly is] the right market classification … Our focus will be on growing the market and educating end users, regulators and existing corporate leaders on how to apply blockchain to their processes. ”