Kasikornbank (KBank) denied announcing a partnership with Binance, the world's largest digital exchange, saying it is interested in establishing and investing in digital asset businesses, but has not decided on how to proceed with such projects.
Binance recently announced a partnership with Gulf Energy Development Plc (Gulf) to study the feasibility of establishing a digital exchange in Thailand.
Peeradej Tanruangporn, chief executive of digital asset exchange Upbit Thailand, said Binance has been trying to penetrate digital asset markets in Southeast Asia and around the world.
He said Binance and Gulf has just signed an memorandum of understanding. Traders should wait for more information to determine if Binance is able to launch a digital exchange in the Thai market.
Mr Peeradej said Binance has been trying to apply for licenses in a lot of countries but faced difficulty. It may be looking for a local partner in Thailand to penetrate the market.
Binance attempted to enter the Singapore market about five months ago, but failed owing to its opaque customer vetting process.
Peer-to-peer businesses can sometimes be viewed as unsafe by regulators as their processes are not verifiable by authorities.
In a similar vein, Binance was charged by Thailand's SEC last year for operating a domestic assets programme without a licence.
Commercial banks and digital asset exchanges, including Upbit Thailand, are continuing to negotiate with possible partners.
Zipmex Thailand's chief executive Akalarp Yimwilai said local digital asset exchange operators would suffer if Binance successfully enters the market because it is a global leader with more experience and investment products.
"Whichever company can provide good, convenient service at a low cost will get the majority of customers," said Mr Akalarp.
He said the entry of Binance will undeniably increase competition in the industry, giving customers more choices.