Thailand Sets Dec. 5 Bitget Block as Local Exchange Deal Awaits Approval
Cointime reports: Thailand’s Securities and Exchange Commission (SEC) has announced that it will block access to the Bitget cryptocurrency exchange starting December 5, 2024, unless a pending acquisition deal receives regulatory approval. The move comes as Japanese internet giant GMO Internet, the seller in the deal, has pushed the planned share transfer to November 30 while it works through Thai regulatory procedures.
Background: The Deal and the Delay
In early 2024, GMO Internet agreed to sell its Thai crypto exchange subsidiary, GMO-Z.com Cryptocurrency Exchange (GMO Coin), to a group that includes Bitget. The acquisition was seen as a strategic move by Bitget to expand into Southeast Asia’s regulated markets. However, the deal has been stalled by the need for approvals from Thai regulators, including the SEC and the Bank of Thailand.
The original timeline called for the share transfer to be completed by September 30, but GMO Internet has now extended the deadline to November 30, citing ongoing regulatory procedures. The Thai SEC’s decision to block Bitget from December 5 adds pressure to complete the deal, as Bitget would lose access to Thai users if the acquisition is not approved by then.
Regulatory Scrutiny of Crypto Exchanges in Thailand
Thailand has been tightening its oversight of cryptocurrency exchanges. In 2023, the SEC introduced stricter rules for digital asset operators, including requirements for capital adequacy, cybersecurity, and customer asset segregation. The regulator has also been cracking down on unlicensed exchanges, ordering internet service providers to block access to platforms that operate without proper licenses.
Bitget has been operating in Thailand without a local license, relying on its global platform. The acquisition of GMO Coin would provide Bitget with a licensed entity in Thailand, allowing it to operate legally. However, the deal requires approval from the Thai SEC, which has been reviewing the application.
Implications for the Crypto Market
The delay and the looming block highlight the challenges that global crypto exchanges face when expanding into regulated markets. Thailand is a significant market for crypto trading in Southeast Asia, with a growing user base. The country’s regulators are keen to ensure that exchanges comply with local laws, particularly regarding anti-money laundering (AML) and know-your-customer (KYC) requirements.
If the deal is not approved by December 5, Bitget will be blocked, potentially disrupting services for Thai users. This could also affect the exchange’s reputation and its expansion plans in the region. For GMO Internet, the delay means a longer wait to exit the Thai market, which it has been looking to do as part of a restructuring of its crypto business.
Forward-Looking Perspective
The outcome of this deal will be closely watched by other exchanges looking to enter Thailand. It will also test the Thai SEC’s willingness to approve foreign acquisitions of local crypto businesses. If the deal goes through, it could pave the way for more consolidation in the Thai crypto market. If it fails, it may signal that Thailand is becoming less welcoming to foreign crypto exchanges.
In the meantime, Bitget users in Thailand should prepare for potential service disruptions. The exchange has not yet commented on the SEC’s announcement, but it is likely to be working with regulators to resolve the issue.
