- Thailand’s SCBX Pcl has scrapped a $500 million purchase agreement for the cryptocurrency exchange Bitkub.
- The bank pulled out of the deal since the crypto exchange has regulatory challenges that need much time to settle.
- According to reports, the buyer and the seller have agreed to terminate the transaction.
The oldest loan provider in Thailand, SCBX Pcl (SCB.BK), announced on August 24 that it would abandon a $500 million purchase agreement for the cryptocurrency exchange Bitkub. According to a report on Reuters, the SCBX decision was because the crypto exchange is mired in a few regulatory challenges, which require more time to address.
A statement from the SCBX read:
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 timeframe in resolving those issues.
Given the current bottleneck, “the buyer and the seller have agreed to terminate the transaction,” the statement concluded. Although SCBX claimed to have investigated the firm thoroughly without discovering any unusual problems.
This latest development follows a directive from the Thai SEC, issued last month, asking the cryptocurrency platform to evaluate the KUB coin listing procedure on its exchange. Nonetheless, Bitkub confirmed in a statement that its operations were unaffected and that it had decided to cancel the sale of the business to address outstanding regulatory difficulties.
Last November, SCBX disclosed a big digital strategy plan that included the acquisition of a 51% stake in Bitkub for 17.85 billion baht, worth $498 million. According to the bank, the move is based on its “commitment to strategic goals to expand into companies connected to blockchain technology and digital assets.”
In related news, money transfers between Thailand and Japan got more uncomplicated as SBI Remit partnered with the blockchain payment service provider Ripple Labs. The initiative will make it possible for Thai nationals currently residing in Japan to rapidly transfer money back to their home country with the ease of RippleNet technology.