Demanding Thai crypto regulation leads to SCB to hold off Bitkub acquisition
Thailand’s oldest lender is not able to obtain the country’s largest neighborhood cryptocurrency exchange due to stringent crypto polices.
As documented by Cointelegraph in November 2021, SCB X Team, a subsidiary of Siam Commercial Bank (SCB), was set to acquire a 51% stake in Bitkub by the 2nd quarter of 2022 as section of a strategy to develop into a regional fintech. Now issues look to have taken a twist, as the financial institution has indefinitely postponed its ideas to receive the well-liked exchange.
As crypto investing continues to be hampered by regulation, SCB X has indefinitely decided not to move forward with a $487 million offer for a 51% stake in Bitkub, Thailand’s significant cryptocurrency exchange platform.
In accordance to a report by Nikkei Asia on Thursday, the guardian firm of SCB, SCB X, knowledgeable the Stock Exchange of Thailand (Established) that the acquisition is “still undergoing thanks diligence.” A senior formal of SCB X told the outlet that the team will not know when the deal will be sealed.
The information of the reschedule was discovered earlier this thirty day period when SCB X submitted a letter to Established outlining the existing condition. In a statement, SCB X CEO Arthid Nanthawithaya said:
“Presently, the issue is in the method of owing diligence and dialogue with the regulatory bodies. Consequently, the completion period of time of the transaction is now extended.”
Thailand is regarded as one of Asia’s most progressive crypto nations, with traders granted tax breaks and a controlled market place for cryptocurrency exchanges. Regardless, Quite a few cryptocurrency exchanges, including Binance and Huobi, have beforehand struggled with regulatory limitations pointers in the country.
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Before this year, the Financial institution of Thailand and the Securities and Trade Commission (SEC) not too long ago introduced stricter cryptocurrency polices and use limitations to ensure that cryptocurrencies can only be traded as belongings on licensed platforms. The information arrived as worldwide crypto prices plummeted and harmed crypto trading optimism, even far more, dashing Bitkub’s aspirations of growing its customer base.
On July 2, the SEC imposed civil penalties on Bitkub Money Team Holdings Chairman Sakolkorn Sakavee for earning up trading volume info. He was fined $216,000 (8 million baht) and banned from managerial roles in the company for a 12 months.