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. The company aims to go public on the Stock Exchange of Thailand, with CEO Jirayut Srupsrisopa stating that they are currently in the process of hiring financial advisers to assist with the IPO listing. This announcement 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.
The crypto trading landscape in Thailand has become increasingly competitive, with rivals such as Binance and Kasikornbank Pcl making moves to capture market share from Bitkub. The number of active crypto trading accounts in Thailand reached 238,000 in March, the highest level since September 2022. To stay ahead in the market, 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 of the previous year. Jirayut expects the valuation of Bitkub Online to rise as trading volumes on the platform approach levels not seen since the previous crypto bull market in 2021, as it contributes approximately 80% of Bitkub Capital’s earnings.
As Bitcoin’s recent rally to record highs fuels 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. It is important to note that SCB X Pcl, a financial company that controls Thailand’s largest bank by market value, decided in 2022 to abandon a 17.85 billion baht plan to acquire a 51% stake in Bitkub Online due to heightened regulatory scrutiny. Despite the challenges, Bitkub is focused on growth and strengthening its position in the Thai market.
The SEC of Thailand has updated the criteria for investing in digital tokens, easing some restrictions to support the growing cryptocurrency market in the country. The SEC Committee approved principles to improve investment criteria and related guidelines for digital asset business operations, aiming to establish effective investor protection mechanisms while considering the risks associated with digital assets. Retail investors can now invest in digital tokens backed by real estate or generating real estate income streams and digital tokens with infrastructure operations or revenue streams without the previous investment restrictions.
In early February, Thailand’s Finance Ministry announced the exemption of value-added tax (VAT) on digital asset trading, positioning the country 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. These regulatory changes and advancements in the cryptocurrency market are expected to drive further growth and innovation within the industry in Thailand. As competition among cryptocurrency exchanges increases and investor interest grows, companies like Bitkub will continue to adapt and evolve to meet the demands of the market.
