The Decision to Withdraw
Siam Commercial Bank (SCB) has decided to wave goodbye to its ambitions for Bitkub, Thailand’s prominent crypto exchange. On Thursday, the SCB X Group announced it would scrap its plans to invest ฿17,850 million (about $536 million in 2021) for a majority stake in Bitkub. The bank cited unresolved issues recommended by the Securities and Exchange Commission (SEC) as a stick in the mud, stating there was no clear timeline for a resolution.
Due Diligence: A Disappointing Outcome
Following the initial announcement in November 2021, SCB conducted a thorough due diligence review of Bitkub. While there were potential opportunities identified for collaboration to enhance Bitkub’s operations, the board of directors ultimately decided to pull the plug on the acquisition. It’s safe to say that their findings did not paint the rosy picture they had hoped for.
SCB’s Continued Commitment
Despite this setback, SCB reaffirmed its commitment to exploring blockchain and digital asset ventures. “SCB X Public Company Limited and SCB Securities Co., Ltd. remain locked on their strategic initiatives to tap into the burgeoning field of blockchain technology, which is poised to be crucial to Thailand’s economic future,” said CEO Arthit Nanthawittaya. So, while Bitkub is out, SCB is still in the game—but with a different strategy.
Timeline of Events
- November 2021: SCB announces intention to acquire 51% of Bitkub.
- January 2022: SEC and central bank impose new regulations on crypto trading.
- Thursday: SCB confirms withdrawal from the acquisition.
A Glimpse Into the Future of Crypto in Thailand
Bitkub remains one of the few SEC-approved exchanges in Thailand. Despite the challenges, the market is evolving, and both existing and potential regulations could shape the crypto landscape moving forward. This could mean new opportunities for entrepreneurs and investors or further complications. The uncertainty continues, but what we know for sure is: the only constant is change.
