Siam Commercial Bank, Thailand’s oldest and first commercial bank, has acquired a controlling share in Thai cryptocurrency exchange Bitkub. It is one of the country’s few regulated exchanges and will serve as a springboard for the SCB’s expanding interest in the crypto asset class.
According to a statement issued on Nov 2, Thailand’s first commercial bank, the Siam Commercial Bank, has bought a 51 percent share in Thailand’s Bitkub exchange. The exchange said that the transaction will benefit the platform’s long-term development and “create the groundwork for the financial industry of the future globe.” The bank paid around $537 million for the stake.
The transaction is slated to close in the first quarter of 2022, but the statement indicates that all of the necessary parts have been put in place. This would be the first time in Thailand’s history that a commercial bank would invest in a cryptocurrency exchange. Financial regulators must approve the transaction.
Bitkub Online is one of Thailand’s few authorized cryptocurrency exchanges. SCB, as a significant stakeholder, will collaborate with Bitkub to build a digital asset ecosystem, with the exchange acting as a critical infrastructure pillar. SCB CEO Arthit Nanthawittaya expressed optimism about the exchange’s potential to aid in the transition to a new economic age.
This is consistent with the SCBX parent vehicle’s objective of transforming itself into a financial technology company. [We] will be able to address the new customer wants and join a new competitive market that will emerge very swiftly over the next 3-5 years.
The SCB is Thailand’s oldest bank, having been founded in 1907. It made many efforts into the cryptocurrency industry before investing in Ripple. Alpha Finance, BlockFi, and BlockFi. Additionally, it includes a venture capital arm that invests in space-related enterprises.
Thailand has a sizable bitcoin user base, although the government is typically lukewarm about the cryptocurrency business. The Thai Prime Minister issued a warning to investors on the crypto asset class after a surge in adoption in Q2 and Q3 2021.
However, none of the measures so far have been described as draconian. The most concerning development is the Thai Securities and Exchange Commission’s (SEC) decision to prohibit NFTs and meme tokens. Additionally, in July 2021, the financial authority filed a criminal case against Binance, alleging that the latter operates without a license.
However, the SCB and Bitkub arrangement indicates that the nation is ready to allow the market to thrive as long as appropriate controls are in place. This is a godsend for the country’s younger population, many of whom are crypto enthusiasts.
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