Bitkub Capital Group Holdings, the parent company of Bitkub, Thailand’s leading cryptocurrency exchange, has unveiled intentions to launch an initial public offering (IPO) in 2025. CEO Jirayut Srupsrisopa disclosed in a recent interview with Bloomberg that the company aims to debut on the Stock Exchange of Thailand.
Currently, Bitkub is in the process of enlisting financial advisers to facilitate the IPO listing. This announcement follows an earlier indication from Bitkub in a shareholder letter from 2023, where the company expressed its desire to pursue an IPO in Thailand, though without specifying a particular timeframe.
Competitive Landscape: Binance and Kasikornbank Vie for Thai Market Share
The cryptocurrency trading scene in Thailand has become increasingly competitive, with contenders like Binance and Kasikornbank Pcl vying to capture market share from Bitkub over the past six months. The number of active crypto trading accounts in Thailand surged to 238,000 in March, marking the highest level since September 2022, as reported by the Securities and Exchange Commission.
In July of last year, 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). Jirayut anticipates the valuation of Bitkub Online, which stood at approximately 6 billion baht during the deal, to rise as trading volumes on the platform approach levels not seen since the previous crypto bull market in 2021. Bitkub Online accounts for roughly 80% of Bitkub Capital’s earnings.
Expanding Operations: Bitkub Plans Workforce Growth
With Bitcoin’s recent rally to record highs fostering renewed optimism, Bitkub is expanding its operations following a reduction in 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.
Regulatory Developments: Thai SEC Eases Crypto Investing Restrictions
The Securities and Exchange Commission of Thailand has revised the criteria for investing in digital tokens, easing some restrictions. In a recent meeting, the SEC Committee approved principles for enhancing investment criteria and related criteria for digital asset business operations, with the goal of establishing effective investor protection mechanisms while acknowledging the risks associated with digital assets.
Among the changes, the commission has 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 restricted to investing a maximum of 300,000 baht in each offering.
Additionally, in early February, the country’s Finance Ministry announced the exemption of value-added tax (VAT) on digital asset trading, positioning Thailand as a leading digital asset hub. By easing tax rules, the ministry suspended the requirement to pay 7% VAT on income derived from cryptocurrency and digital token trading.
