Thailand’s SCB Backs Out From Acquisition Of Bitkub: Here’s Why
- Siam Commercial Bank (SCB), has recently announced that it is terminating its highly-anticipated $500 million deal with Thailand crypto exchange platform Bitkub.
- The deal was canceled just one month after the Thai Securities and Exchange Commission demanded that Bitkub reconsider the procedures for listing KUB cryptocurrency on its exchange.
Thailand’s oldest banking giant Siam Commercial Bank (SCB), has recently announced that it is terminating its highly-anticipated $500 million deal with Thailand crypto exchange platform Bitkub.
According to a recent press release, Siam Commercial Bank will not conduct its previously-planned acquisition of Bitkub, citing required regulatory issue fixes in the exchange.
The deal was canceled just one month after the Thai Securities and Exchange Commission demanded that Bitkub reconsider the procedures for listing KUB cryptocurrency on its exchange. According to the release from SCB, the crypto startup needed more time to address regulatory challenges.
Notably, the SCB Securities Co., Ltd. Board of Directors decided in November that SCBS, a subsidiary of SCB X Public Company Limited, would enter into a “share purchase agreement” to acquire 51% of the shares in Bitkub from Bitkub Capital Group Holdings Co., Ltd., with a total transaction value of roughly Baht17,850 million ($500 million). In the event that regulatory approval was granted, the transaction was anticipated to close by the first quarter of this year.
“Bitkub is currently in the process of resolving various issues as per the recommendations and orders of the Securities and Exchange Commission, Thailand, which are uncertain in terms of the time frame in resolving those issues. As a result, the buyer and the seller have agreed to terminate the transaction,” explained SCB in the release.
This is not the bank’s first attempt at the crypto sector. In order to invest in the emerging markets of blockchain and decentralized finance (DeFi) firms, it already runs a venture capital division named SCB 10X. The announcement reads:
“SCB X Public Company Limited and SCB Securities Co., Ltd. remain committed to their strategic plans to expand into businesses relating to blockchain technology and digital assets, which will play an important role in Thailand’s economy and financial industry.”
Thailand to bring a comprehensive legal framework
Thailand is working on building a comprehensive legal framework for the crypto industry, and the country’s SEC hinted at its plans to ban crypto use for payment services in March. In June this year, Hong Kong-based crypto exchange Huobi Technology Holdings Ltd. announced the shutdown of its unit in Thailand as a local regulator revoked its operating license.
While the Thai government is displaying a tough stance toward the crypto industry, the recent developments, including its plans on CBDC and native currency for Thailand’s Tourism industry, clearly showcase its positive Blockchain technology adoption.