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Thai Bank SCB Delays Investment In Crypto Exchange
SCBX, the holding company of Thailand’s oldest lender Siam Commercial Bank, has extended the due diligence period for its investment in local crypto exchange Bitkub, it said in a regulatory filing.
Kabir V.
10:47 12th Jul, 2022

“The acquisition of shares in Bitcube was subject to compliance with the rules and regulations of the relevant regulatory authorities and conditional on satisfaction in material matters with the results of due diligence and the fulfillment of all conditions specified in the share purchase agreement by the parties. The firm acquired Securities of Thailand said in a filing with the US and Exchange Commission (SEC).

“At present, the matter is in the process of due diligence and discussion with regulatory bodies,” SCBX said.

In November 2021, SCBX announced that it would acquire a 51% stake in Bitkub for 17.85 billion baht (then $537.2 million), a deal that valued the digital asset exchange at $1 billion. The investment was initially expected to be completed by Q1 2022.

DealstreetAsia has contacted Bitkub for comment.

In September last year, Siam Commercial Bank restructured its businesses and formed SCBX as a parent company to replace the lender listed on the Thai exchange in a 1:1 share swap. The move was aimed at establishing the group as a regional fintech leader with operations across various financial businesses and platforms. The intended acquisition of Bitcube was part of that plan.

SCBX was not the first financial services group to venture into the crypto space. In August 2021, the Bank of Ayutthaya participated in a $41 million funding for Thailand-based crypto exchange Zipmex, while Kasikornbank previously launched a service for digital token offerings.

BitKub Under Regulatory Scanner

Bitbucket has recently faced increased scrutiny from the SEC.

Earlier this month, the securities watchdog gave Bitcube Online, a trading unit under the Bitcube Group, 30 days to review its listing process and submit evidence that its KUB tokens comply with the exchange’s listing criteria.

Local media reported that Bitkube claimed that the technology from the KUB project met Bitkube’s standard to an “unprecedented” high level, but the SEC stated that there was no documentation to back up its claim and, therefore, that Coinbase would not be able to support any The cryptocurrency was ineligible for trading on the exchange.

On June 30, the SEC fined Bitkub Online a total of 24 million baht, as well as group executives, including Bitkub Capital Group Holdings chairman Sakolkorn Sakavee, for allegedly falsifying trading volumes of digital assets on its platform. For.

In response, Sakawi wrote on social media accounts: “This case pertains to an incident that occurred three years ago when the SEC inspected Bitkube Online after it acquired a digital asset exchange license.”

He reportedly explained that since the crypto industry was very new back then, each local digital exchange coined the number of digital assets traded on their platform due to a lack of understanding of the rules.

He said construction stopped three years ago after Bitbucket received a warning from the SEC, and the company also set up a market monitoring team to monitor unregulated trading activity.

Bitkub Online and five members of its digital asset selection committee were also fined a total of 15.2 million baht in May for not complying with the SEC’s digital asset listing rules.

Bitcube Online listed KUB coins on its exchanges before the SEC’s regulation was issued, and the SEC reportedly stated that the rule was not retroactive.

The KUB has lost significant value, currently falling from a peak of $17 at the end of December 2021 to $3.


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