The oldest bank in Thailand is unable to purchase Bitkub, the biggest local bitcoin exchange in the country, due to stringent cryptocurrency regulations.
By the second quarter of 2022, SCB X Group, a division of Siam Commercial Bank (SCB), intended to acquire a 51 percent stake in Bitkub in order to establish itself as a regional fintech firm. The bank’s decision to put the deal to purchase the popular exchange on hold indefinitely gives the impression that things have changed now. SCB X has decided not to move forward with its $487 million offer for a 51% stake in Bitkub.
The Stock Exchange of Thailand (SET) was reportedly informed on Thursday that the acquisition is “still undergoing due diligence” by SCB X, the parent company of SCB. According to a senior SCB X official, the team is unsure of when the agreement will be finalized.
With tax breaks for investors and a regulated market for cryptocurrency exchanges, Thailand is Asia’s most progressive nation in terms of cryptocurrencies.
Stronger crypto laws announced by the SEC and the bank of Thailand
However, many cryptocurrency exchanges, including Binance and Huobi, have already experienced issues with the laws and regulations of the nation.
Stronger cryptocurrency legislation and usage limits have recently been declared by the Securities and Exchange Commission (SEC) and the Bank of Thailand. As a result, only authorized sites can exchange bitcoins as assets.
The SEC imposed a punishment on Bitkub Capital Group Holdings chairman Sakolkorn Sakavee on July 2 for falsifying trade volume statistics. He was fined $216,000 (8 million baht) and the business suspended his work as a supervisor for a year.
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