Due to strict cryptocurrency rules, Siam Commercial Bank (SCB) is unable to buy the largest local bitcoin exchange in the nation.
A subsidiary of Siam Commercial Bank (SCB), SCB X Group, announced in November 2021 that as part of its strategy to establish itself as a regional fintech, it will buy a 51 percent ownership in Bitkub by the second quarter of 2022. Things now appear to have changed because the bank has put off buying the well-liked exchange indefinitely.
SCB X informed the Thai Stock Exchange that the Bitkub acquisition is “still undergoing due diligence.”
The company has chosen indefinitely not to proceed with a $487 million offer for a 51 percent share in Bitkub, Thailand’s main cryptocurrency exchange platform, as cryptocurrency trading continues to be constrained by law.
The parent company of SCB, SCB X, reportedly informed the Stock Exchange of Thailand (SET) on Thursday that the acquisition is “still undergoing due diligence.” The squad doesn’t know when the agreement will be finalized, a top SCB X official told the site.
When SCB X sent a letter detailing the current circumstance to SET earlier this month, the information about the rescheduling became public. SCB X’s CEO, Arthid Nanthawithaya, stated in a statement:
“Presently, the matter is in the process of due diligence and discussion with the regulatory bodies. Therefore, the completion period of the transaction is now extended.”
With tax incentives for traders and a regulated market for cryptocurrency exchanges, Thailand is recognized as one of Asia’s most progressive countries in the cryptocurrency space. However, many cryptocurrency exchanges, like as Binance and Huobi, have already had trouble with the country’s governmental regulations and rules.
To ensure that cryptocurrencies can only be exchanged as assets on accredited platforms, the Securities and Exchange Commission (SEC) and the Bank of Thailand recently announced stronger cryptocurrency laws and usage restrictions. The news broke as cryptocurrency prices fell across the board, further dampening investor confidence and killing Bitkub’s hopes of growing its customer base.
Sakolkorn Sakavee, the chairman of Bitkub Capital Group Holdings, was fined by the SEC on July 2 for fabricating trade volume data. He received a $216,000 punishment (8 million baht) and a 12-month supervisory employment suspension from the company.