Thailand’s SCBX bank scraps 51% stake bid in Bitkub over unresolved regulatory compliance issues

Sept 18,2022
Thailand’s SCBX bank scraps 51% stake bid in Bitkub over unresolved regulatory compliance issues

Siam Bank (scbx) has cancelled its plan to purchase 51% shares of bitkub, with a use value of about US $500 million. After the financial due diligence found that the Thailand stock exchange Federation (SEC) raised unresolved compliance issues regarding the digital asset exchange, the borrower made a determination.

Scbx pointed out in a press release signed by CEO arthid nanthawithaya that although various problems are not irretrievable, the uncertain duration architecture to solve this problem is a destroyer. The equity purchase transaction shall be terminated by consensus.

"Although the results of financial due diligence have not found any extraordinary problems that can not be saved, bitkub is now handling some problems according to the opinions and instructions of Thailand [sec], and the time for solving various problems is uncertain at the structural level," the announcement said.

Scbx added that it is aware of the potential of communication and excellent talents, and looks forward to many cooperation opportunities in the future. Scbx, Thailand's largest bank, launched a tender in November last year with its subsidiary SCB securities.

This move is part of the transformation of banks from the past to a broader data trail. Although the transaction with bitkub will lead the financial institution to expand into the blockchain technology and digital asset industry, scbx shows that it is still focused on this aspect.

"SCB x Public Company Limited and SCB Securities Co., Ltd. still focus on their strategic plans to expand projects related to blockchain applications and digital assets, which will play an important role in Thailand's economic and financial fields," the enterprise said.

Scbx should be familiar with blockchain technology and digital asset industry. It has a branch, SCB 10x, which is a venture capital company focusing on blockchain technology and digital assets, investing in ripple, blockfi, alpha finance and other enterprises.

Competition between bitkub and Thailand's digital asset policies and regulations

Bitkub is one of the only six licensed digital asset exchanges in Thailand. Moreover, it is also the largest digital asset exchange in Southeast Asia, and its share of all digital asset transactions exceeds 90%.

However, the company is still fighting against a series of regulatory compliance of the securities and Exchange Commission (SEC). As early as may, the Bangkok Post, a local mainstream media, reported that the criminal punishment committee of the SEC publicly criticized the five members of the digital asset selection committee of the exchange because we followed the Listing Rules of the regulatory authorities when trading kub tokens in the country.

However, the exchange denied the accusation, saying it had complied with all the digital asset listing standards of the securities regulatory authority.

In addition, the Central Bank of Thailand made a 180 degree turn after the Central Bank of Thailand issued new regulations to restrict the banking industry to go all out to invest in digital assets.