Thai Commercial Bank SCB terminated the agreement with BitKub, a cryptocurrency exchange. The deal was terminated after one year of negotiation.
Thailand’s Commercial Bank SCB terminates deal to acquire BitKub
Thailand’s Commercial Bank SCB has terminated its deal to acquire local cryptocurrency exchange BitKub. The bank had entered into an agreement to purchase a majority stake in the firm back in March, but has now pulled out of the deal citing regulatory uncertainty as the reason for the decision.
This is a major setback for BitKub, which had been one of the leading cryptocurrency exchanges in Thailand. The company had recently obtained a license from the country’s Securities and Exchange Commission (SEC) to operate as a digital asset broker-dealer. However, it seems that the regulatory environment in Thailand is still too uncertain for SCB to proceed with the acquisition.
The news of SCB’s withdrawal from the deal comes just a day after another Thai bank, Kasikornbank, announced that it was suspending its own plans to launch a cryptocurrency exchange. These two developments show that Thai banks are still very cautious about entering the cryptocurrency space.
It remains to be seen how BitKub will respond to this setback. The company has not made any public statement since SCB announced that it was terminating the deal.
Report that the bank backed out of a plan to acquire BitKub.
It was recently reported that Thailand’s Commercial Bank SCB has backed out of a plan to acquire the cryptocurrency exchange BitKub. This news comes as a surprise to many in the industry, as the Bank had previously been one of the most vocal supporters of blockchain and cryptocurrencies.
In a statement released by the Bank, they cited “regulatory uncertainty” as the reason for their decision to cancel the deal. This regulatory uncertainty is likely referring to the recent crackdown on cryptocurrencies by the Thai government. Just last month, the Thai SEC issued a warning to investors about the risks associated with investing in cryptocurrencies.
This news is a major setback for the cryptocurrency industry in Thailand. The Bank was one of the few financial institutions in the country that was supportive of cryptocurrencies. With their backing out of this deal, it is likely that other banks will follow suit. This could make it very difficult for cryptocurrency exchanges like BitKub to operate in Thailand.
The bank may have been worried about the crypto exchange’s financial health
When Thailand’s largest commercial bank, Siam Commercial Bank (SCB), announced that it was terminating its deal to acquire BitKub, the country’s leading crypto exchange, it came as a surprise to many.
The deal, which was first announced in March of this year, would have seen SCB take a 51% stake in BitKub for an undisclosed sum. At the time, it was seen as a major endorsement of the crypto industry by a mainstream financial institution.
However, it now appears that SCB had second thoughts about the deal. According to sources close to the situation, the bank became concerned about BitKub’s financial health after doing due diligence on the company.
This is likely why SCB decided to back out of the deal at the last minute. While it’s disappointing to see such a big deal fall through, it’s still encouraging to see that traditional financial institutions are taking crypto companies seriously.
It was uncertain whether the bank had made an initial payment for BitKub or not
It is unclear whether the bank had made an initial payment for BitKub or not, but what is certain is that the deal is now off. This is a developing story, and we will update this post as more information becomes available.
Conclusion
The termination of the deal between SCB and BitKub is a setback for the cryptocurrency industry in Thailand. However, it is worth noting that this is not the first time that a commercial bank has backed out of a deal to acquire a digital currency exchange. The industry will continue to face challenges as it tries to gain mainstream adoption.
