Thailand’s oldest lender SCBX Pcl has announced it is withdrawing from an earlier decision to purchase a 51% stake in the crypto exchange Bitkub for US$500 million, citing regulatory issues.
See related article: Thailand’s central bank to get more power in crypto regulation overhaul: report
Fast facts
- In a statement addressed to the Stock Exchange of Thailand, the lender said that while the results of the due diligence exercise did not reveal any “significant abnormal issues which are irremediable,” Bitkub is currently in the process of resolving various issues with the Securities and Exchange Commission, Thailand.
- As it is uncertain how much time Bitkub would need to resolve those issues, both “the buyer and seller” have decided to terminate the agreement.
- However, SCBX said it remains committed to expanding into businesses relating to blockchain technology and digital assets in Thailand.
- In May, Bitkub was reportedly hit with fines imposed by the Securities and Exchange Commission’s Criminal Fining Committee for non-compliance with digital asset listing rules.
- Bitkub was also told by the SEC in January last year to temporarily shut down and fix issues causing severe outages.
See related article: Can Thailand emerge as a ‘crypto-positive’ travel destination?