Business partnerships and venture capital are important in cryptocurrencies because they indicate when and where major changes may occur in the near future. That said, there are currently several signs pointing to a specific location. So what is this country and why is it so special?
It's time to please
Thailand may not be the first name that comes to mind when it comes to uplisting cryptocurrency hubs. However, there are a number of factors that could justify this.
First, the Thai government has reportedly decided to drop its proposed 15% tax on cryptocurrency capital gains. This shows the power that cryptocurrency investors have in terms of their country's industry-specific policies. Thus, making it an attractive place for entrepreneurs.
In addition, data from Finbold shows that just over 20% of Thai Internet users hold cryptocurrencies, proving a high adoption rate. In comparison, only 12.7% of US internet users hold cryptocurrencies. From this perspective, it makes sense that a cryptocurrency exchange with a global reach like Coinan would show interest in this market.
Another factor in favor of Thailand is that its Electroneum is relatively cheap compared to the US. This makes it an attractive destination for future mining companies.
Always "Tai" your best
Reuters reports that Coin and Thai energy producer Gulf Energy Development Pcl are finalizing a joint venture for the second quarter of 2022. If the deal is solidified, both parties will have to seek permission from regulators.
It is important to remember that in 2021, the Thai SEC filed a criminal complaint against Coinan after the exchange reportedly operated without the required license. While Thailand may offer too many favorable factors for the cryptocurrency business, investors need to see if Coinan's tricky relationship with global regulators could be a stumbling block this time around.
Cubs strike on their own
Thailand's Bitkub enjoys a reputation as the country's largest cryptocurrency exchange. However, Bitkub founder Topp Jirayut Srupsrisopa has shared plans to expand the company's operations to other countries in Southeast Asia. However, Bitkub is reportedly looking for a country where there is no "clear winner" so it can [presumably] become one.
If the Coin-Gulf Energy Development deal goes through, Coin could also potentially expand in Southeast Asia, albeit more aggressively.