Thailand’s SCB Scraps Bitkub Takeover Deal Citing Regulatory Issues

Thailand’s oldest lender has pulled out of a $500 million deal to purchase cryptocurrency trade Bitkub, which had been delayed since July.

According to Reuters, SCBX, the mother or father firm of Siam Commercial Bank, took the choice because the startup wanted time to resolve regulatory points.

Regulatory troubles for Bitkub

The group mentioned: “Bitkub is at the moment within the strategy of resolving varied points as per the suggestions and orders of the Securities and Exchange Commission (SEC), that are unsure by way of time-frame in resolving these points.”

The SCBX Group announced plans to purchase 51% of Bitkub final Nov as part of a significant digital technique.

Arthid Nanthawithaya, CEO and Chairman of the chief committee, mentioned that the trade has grown quickly in recognition over the previous few years and predicted it could develop much more in the long term. 

“The transfer [acquisition] is according to SCBX Group’s technique to improve to a monetary expertise group, assembly new client wants and coming into a brand new aggressive area that may emerge in a short time within the subsequent three to 5 years,” Nanthawithaya had mentioned.

However, the events have now agreed to terminate the transaction regardless of due diligence on the corporate discovering no uncommon points. 

Thai SEC grows vigilant

Last month, the banking big mentioned that the completion interval of the deal was being prolonged amid ongoing discussions with the regulators. 

This was after the SEC imposed civil penalties on Sakolkorn Sakavee, chairman of Bitkub Capital Group Holdings, for falsifying details about the trade’s buying and selling quantity of digital property.

Despite the fallout from the deal, the financial institution mentioned it was “dedicated to strategic plans to broaden into companies referring to blockchain expertise and digital property.”

Meanwhile, the SEC issued a statement this week warning buyers to train warning when participating in decentralized finance (DeFi) transactions, citing dangers and the truth that they aren’t regulated. 

According to the SEC, DeFi companies and investments have gotten more and more in style, notably DeFi which gives deposit-taking and lending companies.

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