Thailand’s Plan of tightening crypto regulations have caused major setback to retail investors and digital asset enthusiasts. Adding to this, several companies have received a major blow due to this decision. Increased supervision on digital assets comes after the industry witnessed major sell-off over the last couple of months.
The Securities & Exchange Commission is planning to make changes to the existing regulations which were put in place in the year 2018. Crypto asset platforms will soon face tighter regulations in Thailand.
Most of the focus shall be directed towards safeguarding the interests of small investors who have invested a large sum of their savings in crypto.
Recently, Zipmex a crypto currency exchange which has huge presence across Asia halted their withdrawals which led to panic across Thailand.
In the light of the recent events, the oldest bank of Thailand has been facing difficulties in acquiring the country’s largest local crypto exchange. This is mainly due to the stricter regulations in Thailand.
Siam Commercial Bank Delays Acquiring The Country’s Largest Crypto Exchange Bitkub
Siam Commercial Bank (SCB) is Thailand’s oldest bank was supposed to acquire Bitkub which is a famous crypto exchange. The bank is unable to do that as Thailand recently amped up regulations on cryptocurrencies.
A subsidiary of the bank was reported to acquire 51% stake in Bitkub. The timeline mentioned was apparently the second quarter of 2022, the plan was to become a regional fintech post the acquisition. Currently, there is no date in sight for the acquisition to take place.
An officer from SCB X quoted,
We have made it clear in our statement to the Stock Exchange of Thailand (SET) that the deal is still undergoing due diligence, we don’t know when the deal will be sealed
Earlier this month, the company supposedly notified Stock Exchange of Thailand that the delay is being talked about by regulatory bodies and that the acquisition date has been postponed.
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SCB X Wanted To Become A Regional Fintech Player
SCB X had announced that it wanted to acquire a stake in Bitkub, last year, November. This deal was a part of SCB strategy to become a regional fintech player. The acquisition was initially due in the first quarter of 2022.
Bitkub at that time had the valuation at 35 billion baht ($ 1.05 billion) and it had a unicorn status. The new tightening of the rules have now caused limitations in usage of payments and directed towards only licensed trading platforms in the country.
Bitkub’s intention was also to expand their present customer base however, the crypto market slump has dampened that plan. Due to tightening of regulations, the exchange Bitkub has now moved Vietnam. Vietnam currently has a much amicable crypto environment.
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Featured image from UnSplash, chart from TradingView.com