- SCBX, dropped the plan of becoming a major shareholder of crypto exchange, Bitkub.
- It stated the concern with Bitkub as “resolving various issues.”
Siam Commercial Bank (SCBX) is one of the oldest insurance firms working in Thailand. In November, 2021 it announced the acquisition of Thailand’s crypto exchange, Bitkub by holding 51% of its share.
On Thursday, SCBX Group officially announced that it would not be paying 17,850 million Baht that nearly cost $536 million in November, 2021 and at present it is around $497 million. The bank clearly denies the acquiring of Bitkub by 51% of stakeholding. It also cites pleading from the Security and Exchange Commission of Thailand without any certain timeline.
SCB group directed a due diligence exercise on Bitkub, that results in “many opportunities for cooperation in various areas in order to develop and improve the business operations,” of Bitkub. While, the team of board of directors of SCB group proceeded with a resolution for terminating the deal this Thursday.
As per the statement by SCBX bank, “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.”
The man behind the acquisition of Bitkub was Arthit Nanthawittaya, who is the CEO of SCB. He fundamentally proposed the acquisition that depended on the growth of business in the crypto world in Thailand from 2019 and aimed for expected value in the long-run.
In January 2022, the SEC and central bank of Thailand announced about the regulations and usage limitations on digital assets. It was aimed to prohibit the trading of digital assets on unlicensed platforms. Additionally, Bitkub is one of few Thailand’s crypto exchanges that approved the country’s SEC. Unlike, the prohibitions reasoned a delay in the deal of Bitkub and SCB.