Strict Thai crypto regulation causes SCB to delay Bitkub acquisition

cointelegraph.com:

Thailand’s oldest bank is unable to acquire the country’s largest local cryptocurrency exchange due to stringent crypto regulations.

As reported by Cointelegraph in November 2021, SCB X Group, a subsidiary of Siam Commercial Bank (SCB), was set to acquire a 51% stake in Bitkub by the second quarter of 2022 as part of a plan to become a regional fintech. Now things seem to have taken a twist, as the bank has indefinitely postponed its plans to acquire the popular exchange.

As crypto trading continues to be hampered by regulation, SCB X has indefinitely decided not to move forward with a $487 million offer for a 51% stake in Bitkub, Thailand’s major cryptocurrency exchange platform.

According to a report by Nikkei Asia on Thursday, the parent company of SCB, SCB X, informed the Stock Exchange of Thailand (SET) that the acquisition is “still undergoing due diligence.” A senior official of SCB X told the outlet that the team doesn't know when the deal will be sealed.

The news of the reschedule was revealed earlier this month when SCB X submitted a letter to SET outlining the current situation. In a statement, SCB X CEO Arthid Nanthawithaya said:

Thailand is regarded as one of Asia’s most progressive crypto nations, with traders granted tax breaks and a regulated market for cryptocurrency exchanges. Regardless, Many cryptocurrency exchanges, including Binance and Huobi, have previously struggled with regulatory restrictions guidelines in the country.

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Earlier this year, the Bank of Thailand and the Securities and Exchange Commission (SEC) recently announced stricter cryptocurrency regulations and usage limitations to ensure that cryptocurrencies can