Bitkub Capital Group Holdings, the parent company of Bitkub, Thailand’s largest cryptocurrency exchange, has announced plans to conduct an initial public offering (IPO) in 2025 on the Stock Exchange of Thailand. The company is currently in the process of hiring financial advisers to assist with the IPO listing. This decision follows a previous indication from Bitkub in a shareholder letter from 2023, where the company expressed its intention to pursue an IPO in Thailand without specifying a specific timeframe. Bitkub’s CEO, Jirayut Srupsrisopa, aims to expand the company’s operations and increase its workforce to 3,000 employees by 2025, up from the current 2,000.
The competition in the crypto trading landscape in Thailand has intensified, with rivals such as Binance and Kasikornbank Pcl making moves to capture market share from Bitkub over the past six months. The number of active crypto trading accounts in Thailand reached 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 in July of last year, further indicating the company’s growth and expansion in the market.
In response to Bitcoin’s recent rally to record highs, Bitkub is looking to expand its operations after reducing its workforce by about 6% between 2022 and 2023. Jirayut expects the valuation of Bitkub Online, which was approximately 6 billion baht during a previous deal, to increase as trading volumes on the platform approach levels not seen since the previous crypto bull market in 2021. Bitkub Online contributes about 80% of Bitkub Capital’s earnings, and as trading activity continues to surge, the company is optimistic about its future growth and performance in the market.
Thailand’s Securities and Exchange Commission (SEC) has updated the criteria for investing in digital tokens, easing some restrictions to promote effective investor protection mechanisms while considering the risks associated with digital assets. The commission has lifted investment restrictions previously imposed on retail investors for digital tokens backed by real estate or generating real estate income streams and digital tokens with infrastructure operations or revenue streams. Retail investors were previously limited to investing a maximum of 300,000 baht per offering, but with these new changes, there are more opportunities to invest in various types of digital tokens.
In February, Thailand’s Finance Ministry announced the exemption of value-added tax (VAT) on digital asset trading, further positioning the country as a leading digital asset hub. By easing tax rules and suspending the requirement to pay 7% VAT on income derived from cryptocurrency and digital token trading, the ministry aims to attract more investors and promote growth in the digital asset market. With these regulatory changes and incentives, Thailand is creating a more favorable environment for crypto investing and trading, encouraging more individuals and companies to participate in the market.
Despite challenges such as heightened regulatory scrutiny and competition from other players in the industry, Bitkub remains focused on its expansion and growth plans. By pursuing an IPO in 2025 and increasing its workforce, the company is positioning itself for future success and solidifying its position as a key player in Thailand’s crypto trading market. With the support of financial advisers and a strong customer base, Bitkub is optimistic about its prospects and aims to continue innovating and providing top-quality services to its users.
