DeFi platform Forward has raised $5 million in a funding round led by some of Thailand’s largest banks. The funding round was led by Primestreet Capital and included venture capital firms affiliated with Kasikornbank and the Bank of Ayudhya. Ratanakorn Technology Group, GBV Capital, and Varys Capital also participated.
Chanon Charatsuttikul, Forward’s founder and CEO, announced the news in a press release.
The fundraising comes amid moves by the country’s regulators to tighten rules in the crypto sector in the wake of trading irregularities and the collapse of a major acquisition involving a crypto exchange.
Forward, a decentralized derivatives exchange
Forward is a DeFi platform that is developing a protocol for decentralized derivative trading that matches long and short positions. For the uninformed, long and short positions reflect the two possible price directions required to generate a profit.
With the $5 million seed funding, Forward claims to be the first DeFi project to receive funding from global investors and two major Thai banks. The funds will go towards developing a decentralized derivative platform, “which is non-custodial with a system that prohibits transactions from sanctioned countries and addresses,” Chanon Charatsuttikul said.
Strained ties
Thailand and the crypto sector have had an uneasy relationship in recent times.
A few weeks ago, Thailand’s oldest bank, Siam Commercial Bank, abandoned a $500-million deal to acquire cryptocurrency exchange Bitkub, citing regulatory issues. The cancellation happened after the Thai Securities and Exchange Commission ordered the crypto platform to review the listing process of the KUB coin on its exchange.
Besides, Thailand’s crypto exchange Huobi also shut down its operations in the country.
These developments cast a pall over Thailand’s dream of becoming Southeast Asia’s leading trading center for digital assets.
FAQs
Is BTC legal in Thailand?
Cryptocurrencies, including BTC, are not considered legal tender in Thailand.
Crypto exchanges in Thailand must obtain licenses from the SEC, and transactions are limited to Thai Baht.
While there is no general prohibition against cryptocurrencies, Thailand does not consider digital assets to be lawful currencies, and businesses are prohibited from accepting them for goods or services.
Is crypto legal in Thailand?
Crypto is not considered legal tender in Thailand, and the country doesn’t view digital assets as lawful currencies.
However, crypto exchanges are required to obtain licenses from the SEC, and Thailand has granted licenses to four cryptocurrency exchanges, making it one of the most regulated markets globally.
The sale of Bitcoin and other tokens to the public is regulated by specific legislation, namely the Emergency Decree, rather than a direct prohibition.
Is Thailand crypto tax-free?
1. Tax Policy Changes: Thailand introduced new tax policies targeting crypto traders in March 2022.
2. Personal Income Tax: Profits from digital assets are subject to progressive Personal Income Tax (PIT) up to 35%.
3. VAT Exemption: Crypto trading on Thai exchanges is excluded from VAT until the end of 2023.
Is USDT legal in Thailand?
Yes, USDT is legal in Thailand. Individuals are permitted to buy Tether (USDT) in the country, and Thailand has implemented regulatory measures for cryptocurrencies, overseen by the Thai Securities and Exchange Commission (SEC). However, it’s important to note that cryptocurrencies, including USDT, are not considered legal tender in Thailand, and crypto exchanges must obtain licenses from the SEC for Thai Baht transactions.
