Strict Thai crypto regulation causes SCB to delay Bitkub acquisition
Thailand’s oldest bank is unable to acquire the country’s largest local cryptocurrency exchange due to stringent crypto regulations.
As reported by Cointelegraph in November 2021, SCB X Group, a subsidiary of Siam Commercial Bank (SCB), was set to acquire a 51% stake in Bitkub by the second quarter of 2022 as part of a plan to become a regional fintech. Now things seem to have taken a twist, as the bank has indefinitely postponed its plans to acquire the popular exchange.
As crypto trading 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 major cryptocurrency exchange platform.
According to a report by Nikkei Asia on Thursday, the parent company of SCB, SCB X, informed the Stock Exchange of Thailand (SET) that the acquisition is “still undergoing due diligence.” A senior official of SCB X told the outlet that the team doesn't know when the deal will be sealed.
The news of the reschedule was revealed earlier this month when SCB X submitted a letter to SET outlining the current situation. In a statement, SCB X CEO Arthid Nanthawithaya said:
Thailand is regarded as one of Asia’s most progressive crypto nations, with traders granted tax breaks and a regulated market for cryptocurrency exchanges. Regardless, Many cryptocurrency exchanges, including Binance and Huobi, have previously struggled with regulatory restrictions guidelines in the country.
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