Bitkub, Thailand’s Biggest Cryptocurrency Exchange, Plans 2025 IPO on Home Turf

Bloomberg Expert Says Ethereum ETF Approvals Are Overhyped Compared To Bitcoin

Bitkub Capital Group Holdings, the parent firm of Bitkub, Thailand’s largest cryptocurrency exchange, has unveiled plans to launch an initial public offering (IPO) in 2025, according to CEO Jirayut Srupsrisopa in a recent interview with Bloomberg.

Binance and Kasikornbank Compete for Capturing Thai Market

The company aims to list on the Stock Exchange of Thailand and is currently in the process of enlisting financial advisers to assist with the IPO listing. The announcement follows a previous indication from Bitkub in a shareholder letter from 2023, expressing the intention to pursue an IPO in Thailand without specifying a specific timeframe.

The cryptocurrency trading arena in Thailand has grown increasingly competitive, with rivals such as Binance and Kasikornbank Pcl making strides to gain market share from Bitkub over the past six months. The number of active cryptocurrency trading accounts in Thailand surged to 238,000 in March, the highest level since September 2022, as reported by the Securities and Exchange Commission.

Bitkub sold a 9.2% stake in its crypto exchange unit, Bitkub Online Co., to Asphere Innovations Pcl for 600 million baht ($16.5 million) in July last year. Jirayut anticipates the valuation of Bitkub Online to rise as trading volumes on the platform approach levels not seen since the previous cryptocurrency bull market in 2021. Bitkub Online contributes roughly 80% of Bitkub Capital’s earnings.

Thai SEC Eases Crypto Investing Restrictions

As Bitcoin’s recent rally to record highs sparks renewed optimism, Bitkub is expanding its operations after reducing its workforce by about 6% between 2022 and 2023. Jirayut aims to increase the company’s headcount to 3,000 employees by 2025, up from the current 2,000. Notably, SCB X Pcl, a financial company controlling Thailand’s largest bank by market value, abandoned a 17.85 billion baht plan to acquire a 51% stake in Bitkub Online in 2022 due to heightened regulatory scrutiny.

The Securities and Exchange Commission has updated its criteria for investing in digital tokens, easing some restrictions. At a recent meeting, the SEC Committee approved principles for improving investment criteria and related criteria for digital asset business operations, aiming to establish effective investor protection mechanisms while considering the risks associated with digital assets.

The commission lifted investment restrictions previously imposed on retail investors for digital tokens backed by real estate or generating real estate income streams (real estate-backed ICOs) and digital tokens with infrastructure operations or revenue streams (infra-backed ICOs). Previously, retail investors were limited to investing a maximum of 300,000 baht per offering. In early February, the country’s Finance Ministry announced the exemption of value-added tax (VAT) on digital asset trading to position Thailand as a leading digital asset hub, suspending the requirement to pay 7% VAT on income derived from cryptocurrency and digital token trading.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.