Thailand’s Crypto Behemoth Bitkub Sets Sights On 2025 Listing

In a move signaling the maturation of the crypto market in Thailand, Bitkub Capital Group Holdings, the proprietor of the nation’s foremost crypto exchange, has announced its intention to conduct an initial public offering (IPO) by 2025.

This revelation was made by Jirayut Srupsrisopa, the CEO of Bitkub, during an interview with Bloomberg. According to Jirayut, the planned IPO, aimed at listing on the Stock Exchange of Thailand, represents a step to “amplify” the company’s stature and secure additional capital for future ventures.

A Competitive Landscape And Regulatory Environment

Bitkub’s journey toward this IPO began in a 2023 shareholder letter, hinting at an upcoming public listing without a specific timeline.

The move towards public listing gained further momentum last July when Bitkub sold a 9.2% stake in its exchange unit to Asphere Innovations Pcl, valuing the company at approximately 6 billion baht ($16.5 million).

The CEO expressed optimism that Bitkub Online’s valuation would surge as trading volumes approach the zenith seen during the crypto bull market in 2021.

Jirayut further disclosed that amidst Bitcoin’s surge to new highs, Bitkub is on an expansion trail, “boosting” its workforce to meet the anticipated growth and market demands. The decision to go public comes during intense competition within Southeast Asia’s second-largest economy.

Notable players such as Binance and Kasikornbank Pcl have made strides to capture market share from Bitkub, as reported by Bloomberg, underscoring the interest and investment in crypto trading within Thailand.

According to the news media, the number of active crypto trading accounts witnessed a significant increase, reaching a peak in September 2022. This surge in trader activity underscores the growing appetite for digital assets in the region, setting the stage for Bitkub’s growth plans.

Thailand’s Stance On Crypto

While Bitkub gears up for its IPO, the regulatory landscape for crypto in Thailand presents a nuanced picture. The Thai Finance Ministry has recently announced the exemption of value-added tax (VAT) on digital assets trading “to push Thailand towards becoming a digital asset hub.”

Finance Ministry has announced the exemption of VAT on trades in digital assets, to boost capital mobilisation through digital assets, in an attempt to make Thailand regional digital asset hub, says Paopoom Rojanasakul, secretary to Finance Minister. #ThaiPBSWorld #Thailand #VAT

— Thai PBS World (@ThaiPBSWorld) February 6, 2024

However, Thailand’s Securities and Exchange Commission (SEC) has adopted a cautious approach towards a crypto-related financial product, particularly the trading of spot exchange-traded Funds (ETFs).

Despite the US SEC’s approval of spot Bitcoin ETFs, Thailand’s SEC has stated its position to refrain from allowing the establishment of spot Bitcoin ETFs in the country “for the time being.”

Nevertheless, the country’s SEC assures investors that investing in digital assets remains accessible through licensed domestic exchanges, ensuring a “regulated and transparent” environment for Thai investors.

Featured image from Unsplash, Chart from Tradingview