Thailand’s Oldest Lender Delays Bitkub Exchange Acquisition Amid Tighter Crypto Rules

Must read

California fraud cases highlight the need for a regulatory crackdown on crypto

The California Department of Financial Protection and Innovation (DFPI) announced last month that it had issued desist and refrain orders to 11 entities for...

Putin gives Snowden citizenship, Interpol elicits help in Do Kwon search and FTX US buys Voyager: Hodler’s Digest, Sept. 25-Oct. 1

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption...

NFT space bridges passions for tennis legend Maria Sharapova

Tennis legend Maria Sharapova appeared at the Binance Blockchain Week Paris 2022 to share her interest in nonfungible tokens (NFTs).During an exclusive interview with...

What is the economic impact of cryptocurrencies?

<div :i18n="{"back_to_top":"Back to top","sponsored":"Sponsored","blockshow_promo_text":"","by":"By","editor":"Editor's choice","go_to_flashnews_cat":"","press_release_badge":"Press release","press_releases":"Press Releases","press_releases_hide_items":"Hide","press_releases_load_more":"Load more","load_more":"Load more articles","loading":"Loading","paid":"This publication is sponsored.","comments":"Comments","youtubeBannerButtonLabel":"Subscribe","youtubeBannerChannelUrl":"https://www.youtube.com/user/cointelegraph","youtubeBannerHeadlineAlt":"Cointelegraph on Youtube","hot":"Hot stories","pr_description":"Cointelegraph does not...

Thailand’s Oldest Lender Delays Bitkub Exchange Acquisition Amid Tighter Crypto Rules

The company that owns Thailand’s Siam Commercial Bank has postponed a deal to acquire a majority stake in Bitkub, the country’s largest cryptocurrency exchange. The decision comes amid tightening crypto regulations that limit growth in domestic crypto trading.

SCB Postpones Acquisition of Thai Crypto Exchange Bitkub

The parent company of Siam Commercial Bank, SCB X, has delayed a 17.85-billion-baht ($487 million) bid to acquire 51% of the largest crypto exchange in Thailand, Bitkub. The bank, which is the kingdom’s oldest lender, postponed the deal indefinitely as Thai regulations continue to inhibit growth of crypto trading, Nikkei Asia reported, quoting the financial group.

“We have made it clear in our statement to the Stock Exchange of Thailand (SET) that the deal is still undergoing due diligence,” an unnamed senior official at the SCB X has been quoted as stating. “We don’t know when the deal will be sealed,” he added. Earlier in July, the company notified the SET that the matter is still being discussed with regulatory bodies and that its completion period had been extended.

SCB X first announced its intention to acquire a stake in Bitkub in November, last year. The transaction was supposed to go through its brokerage subsidiary SCB Securities. The plan was part of the group’s strategy to become a regional fintech player. The deal was expected to be completed by the first quarter of 2022. At the time, Bitkub was valued at 35 billion baht ($1.05 billion), giving it a unicorn status.

The delay followed an announcement by the Bank of Thailand and the Securities and Exchange Commission (SEC) of tougher regulations for cryptocurrencies in February. The new rules limited their use in payments and aimed to ensure they can be traded only on platforms licensed in the country. Meanwhile, the crypto market slump also dimmed hopes that Bitkub could expand its customer base.

Speaking to Nikkei, Secretary General of the Thai Digital Asset Association Nares Laopannarai commented:

Let me put it this way, I think the tight regulations are quite unfriendly to crypto trade and limit the growth of crypto trading to less than we expected.

What’s more, in the beginning of this month, the SEC imposed sanctions on Bitkub Capital Group Holdings’ Chairman Sakolkorn Sakavee. He was accused of fabricating information regarding the trading volume of digital assets on the exchange. Sakolkorn was fined 8 million baht ($218,000) and banned from executive positions in the company for a full year.

In response to the increasingly stringent regulations in Thailand, Bitkub has tried to relocate to Vietnam. Sakolkorn noted that the destination has a much friendlier crypto business climate. This past spring, Bitkub joined forces with a Vietnamese startup to launch a private blockchain operator called Kubtech. The latter is expected to soon become a trading platform for digital assets.

Do you think Siam Commercial Bank will eventually finalize the deal to acquire a majority stake in Bitkub? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons, PKittiwongsakul

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More articles

Latest article

California fraud cases highlight the need for a regulatory crackdown on crypto

The California Department of Financial Protection and Innovation (DFPI) announced last month that it had issued desist and refrain orders to 11 entities for...

Putin gives Snowden citizenship, Interpol elicits help in Do Kwon search and FTX US buys Voyager: Hodler’s Digest, Sept. 25-Oct. 1

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption...

NFT space bridges passions for tennis legend Maria Sharapova

Tennis legend Maria Sharapova appeared at the Binance Blockchain Week Paris 2022 to share her interest in nonfungible tokens (NFTs).During an exclusive interview with...

What is the economic impact of cryptocurrencies?

<div :i18n="{"back_to_top":"Back to top","sponsored":"Sponsored","blockshow_promo_text":"","by":"By","editor":"Editor's choice","go_to_flashnews_cat":"","press_release_badge":"Press release","press_releases":"Press Releases","press_releases_hide_items":"Hide","press_releases_load_more":"Load more","load_more":"Load more articles","loading":"Loading","paid":"This publication is sponsored.","comments":"Comments","youtubeBannerButtonLabel":"Subscribe","youtubeBannerChannelUrl":"https://www.youtube.com/user/cointelegraph","youtubeBannerHeadlineAlt":"Cointelegraph on Youtube","hot":"Hot stories","pr_description":"Cointelegraph does not...

What is wrapped Ethereum (wETH) and how does it work?

Traders who use the Ethereum network are familiar with the ERC-20 technical standard and have most likely traded and invested in tokens that utilize...