SCBX Pcl – formerly known as Siam Commercial Bank – withdrew its intentions to purchase a 51% stake in the crypto asset firm Bitkub for $500 million.
The financial institution said the exchange needs to solve its regulatory issues before going back to the table.
- Despite being close to shaking hands with Bitkub, the organization scrapped plans to acquire a majority stake in the platform for 17.85 billion baht ($497 million). However, its decision is not final, and a possible deal might see the light of day, assuming the exchange fixes its problems with domestic watchdogs.
“Bitkub is currently in the process of resolving various issues as per the recommendations and orders of the Securities and Exchange Commission, Thailand, which are uncertain in terms of a time frame in resolving those issues,” SCBX stated.
- The monetary entity said it stays committed to expanding its business operations into the blockchain and cryptocurrency field.
- The termination of the deal comes shortly after the Thai Securities and Exchange Commission ordered Bitkub to review the listing process of its native token – KUB coin (KUB) – on its platform.
- The asset’s price tumbled significantly after the news. Yesterday, KUB was hovering around $2.04, while at the moment of writing these lines, its valuation is 13% less – approximately $1.77.
- Speaking of SCBX, it is worth mentioning that it is among the leading financial institutions in Thailand. Established in 1904 as the first local bank, it now has over 27,000 employees and serves around 16 million users.