Thailand’s Major Bank to Acquire Majority Stake in Leading Crypto Exchange

Historic Acquisition in the Digital Asset Space

In a groundbreaking move for the Thai financial landscape, Siam Commercial Bank’s SCB X Group has announced its intention to acquire a 51% stake in Bitkub, one of the country’s largest crypto exchanges, for 17.85 billion baht (approximately $536.7 million). This deal is expected to finalize by the second quarter of 2022, pending approval from the Thai Securities and Exchange Commission and the central bank.

Why the Move?

The decision to step into the digital asset realm comes as no surprise to industry watchers. Arthit Nanthawittaya, the bank’s CEO, highlighted the explosive growth of digital asset businesses over the past two years and pointed toward a long-term vision for this acquisition. The aim? To cultivate a flourishing digital asset ecosystem in Thailand.

Bitkub’s Transformation

Jirayut Srupsrisopa, Bitkub’s founder and CEO, expressed pride in the exchange’s evolution from a mere startup to a vital component of Thailand’s financial framework. “Bitkub has reached the point where we have become an important structure in Thailand’s future economy,” he stated. It appears Bitkub is positioning itself as a necessity for the future of the financial industry 3.0 in Thailand.

The Regulatory Landscape

In the backdrop of this acquisition, Thailand’s regulatory environment has remained active. The Thai SEC has laid down several important guidelines, prohibiting exchanges from engaging in meme tokens, fan tokens, NFTs, and tokens issued by exchanges themselves. This rigorous framework aims to safeguard investors while ensuring systemic integrity.

Bitkub’s Growth and Achievements

As proof of its standing, Bitkub recently celebrated achieving unicorn status with a valuation exceeding $1 billion. This milestone was driven by a staggering increase in its KUB token, which skyrocketed by over 146% in just 36 hours, catapulting its price to $2.44. The exchange also reported a trading volume exceeding $274 million in the preceding 24 hours, showcasing its robust market activity.