JIBEX readies for cryptocurrency surge

JIBEX readies for cryptocurrency surge

Trading poised to begin by April

JIB Computer Group Co Ltd plans to launch JIBEX, a digital currency trading platform, in April, with first-year revenue generated from commission fees projected at 170 million baht.

JIBEX will have registered capital of 5 million baht, with JIB Computer Group holding a 51% stake, JIBEX chief executive Thuntee Sukchotrat owning 20% and the remainder belonging to experts in the IT industry.

The official opening is scheduled for March 26, with trading operations commencing in April.

Trading value is expected to be 100 million baht a day, with a trading commission fee charged at 0.25% of trading value, Mr Thuntee said.

The company will also unveil its partners, consisting of a custodian bank, cooperation bank, cybersecurity company, asset management or financial advisory firm, and global networking exchange, on March 26.

The new cryptocurrency exchange will offer trading in five cryptocurrencies: bitcoin, ethereum, ripple, bitcoin cash and litecoin. Other virtual currencies will be offered in the future, Mr Thuntee said.

In the initial phase, JIBEX will offer an e-wallet for keeping digital currencies. Investors can open an account without any minimum investment requirement, Mr Thuntee said.

JIBEX will use the Know Your Customer (KYC) system, which has a high-quality standard to boost investor confidence in IT security and support government officials in examining customers' accounts through the KYC system, he said.

According to Mr Thuntee, the JIBEX website will be a gateway providing basic knowledge for cryptocurrency trading, offering articles and information to help investors make educated decisions.

For the second phase, JIBEX will provide trading between the baht and digital currencies.

Robo-trading is the third-phase tool and could be developed into an e-commerce trading system whereby payment can be made using digital currencies, Mr Thuntee said.

For the fourth phase, JIBEX plans to provide wealth management services, including asset management and digital investment advisory services.

The company plans to work with asset management firms and securities companies on these services, Mr Thuntee said, though not until the new law governing digital asset supervision is formally announced.

Each phase will take 2-3 months to complete, he said.

"Cryptocurrencies are the talk of the town in Thailand," Mr Thuntee said. "It's a new investment trend, and I believe that digital money will be accepted [for settlement of goods and services] in the future, but people have to learn about it and understand changes occurring in the financial environment.

"We are creating a new crypto exchange for Thai people, and JIBEX will be traded in baht. We are also ready to follow any new rules and regulations implemented by the state."

JIB Computer Group managing director Somyot Chawalit said the company plans to list on the Stock Exchange of Thailand within the next three years.

The company recorded total revenue of 8.3 billion baht last year, a figure that is projected to rise to 10 billion baht this year, Mr Somyot said.

JIB Computer Group is a distributor and seller of computer hardware and IT trading products. There are 150 JIB shops nationwide.

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