Thai lender SCBX scraps $500 million acquisition of crypto exchange Bitkub
2022.08.25 10:17
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FILE PHOTO: Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
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BANGKOK (Reuters) – Thailand’s oldest lender, SCBX Pcl said on Thursday it was pulling out of a $500 million deal to buy crypto exchange Bitkub, saying the startup needed time to fix regulatory issues.
“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 time frame in resolving those issues,” SCBX said in a statement.
“As a result, the buyer and the seller have agreed to terminate the transaction,” it said.
SCBX said it had been conducting due diligence on the company and did not find any abnormal issues.
The announcement comes after the Thai Securities and Exchange Commission last month ordered the crypto platform to review the listing process of KUB coin on its exchange.
SCBX in November announced a plan to acquire 51% of Bitkub for 17.85 billion baht ($497.77 million), part of a major digital strategy.
The bank said it was “committed to strategic plans to expand into businesses relating to blockchain technology and digital assets.”
Bitkub did not immediately respond to a Reuters request for comment.
($1 = 35.8600 baht)
