Thuntee Sukchotrat, left, CEO of JIBEX Co, and Somyot Chaowalit , managing director of JIB Computer Group , vow to compile with regulations on cryptocurrency trading.
Thuntee Sukchotrat, left, CEO of JIBEX Co, and Somyot Chaowalit , managing director of JIB Computer Group , vow to compile with regulations on cryptocurrency trading.

Thai startup to launch cryptocurrency trading platform amid growing investment interest 

Economy March 14, 2018 01:00

By   WICHIT CHAITRONG
THE NATION

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A LOCAL startup plans to launch an exchange platform for trading cryptocurrencies as more Thais are now interested in investing in the digital currencies and blockchain technology.



Thuntee Sukchotrat, chief executive officer of the JIBEX Co, said the company will launch a market platform for investors in cryptocurrencies such as bitcoin, ethereum, and ripple. He said the firm would comply by the rules issued by the government. 

The Revenue Department’s plan to collect a 15 per cent tax on capital gain or dividend generated from digital assets could have some impact on the company, but it is an investment of high risk and high returns, he said. 

“More and more people are talking about investment opportunities in digital currencies and the potential high growth of the market”, said Thuntee who is a specialist in big data and information technology.

Currently there are two exchanges offering trading to investors in Thailand, namely BX and TDAX, with an estimated daily trading volume of Bt 90 million and 10 million respectively, he said

Market value of cryptocurrencies is estimated at around Bt4 to Bt5 billion while the global market is worth Bt12 trillion.

New investors should wait for the announcement of the digital asset rule from the government before jumping into the market, said Thuntee.

The company targets revenue of Bt 170 million in the first year of operations. 

It’s revenue would be fee-based, or 0.25 per cent on top of each transaction. It is the market price, he said, in referring to fee charged on investors.

The company will offer cryptocurrency wallet to investors who register for trading on the exchange. The JIBEX wallet, incorporating a security system known as know-your-customer (KYC), will be on par with banking standard . The KYC will end regulator’s concerns on cryptocurrency fraud or money laundering activities. “We are ready to comply with the rules enforced by regulators,” said Thuntee. Blockchain technology will also track the trail of digital transactions to reduce the risk of fraud or illegal activities, he assured.

In the first phase of operation , trading will cover five digital currencies namely bitcoin, ehterreum, bitcoin cash, ripple and litecoin. The second phase will allow investors to trade baht and cryptocurrencies . The third phase will offer investors investment tools such as robot trade and will incorporate e-commerce feature in order to allow investors using digital currencies in exchange for goods and services.

The final phase will launch wealth management service for investors, according to Thuntee.

He claims that the company is in partnerships with IT security firms, brokerage firms and commercial banks , necessary for operating the exchange which will also be connected to foreign exchanges trading digital currencies, he said.

The company has a registered capital of Bt5 million. 51 per cent of company shares is held by Somyot Chaowalit, managing director of J I B Computer Group (JIB), a major computer vendors; 29 per cent by Thuntee with the rest held by its IT partners.

“The company will increase capital if required by the regulator,” added Thuntee.