Thailand’s oldest bank stops buying crypto exchange
Thailand’s oldest bank is taking the time to review the agreement it entered into to buy the country’s largest cryptocurrency exchange last year.
Bangkok-listed Statistics X agreed to buy a majority stake in Bitkub Online for 17.9 billion baht ($ 490 million) on top of the crypto markets in November last year, with the intention of terminating the agreement earlier this year.
Nevertheless, in the middle of talks with regulators, Statistics Sweden says that due diligence is still to be carried out. Last month, the Securities and Exchange Commission fined the company and its CEO for creating “artificial trading volume” on the platform.
The company and five officials were also fined by the regulator in May, due to breaches of guidelines when the company listed its own digital coins. Statistics Sweden has not proposed a completion date for the proposed acquisition of Bitkub.
Statistics Sweden’s ambitions
Increased regulatory scrutiny facing Thailand’s cryptocurrency industry could dampen Statistics Sweden’s ambitions to become the market leader in digital assets. However, the delay in the agreement has led some to question the 115-year-old financial group’s intention to become a regional fintech power plant.
“Bitkub is an important step for Statistics Sweden in achieving its expansion into digital assets and fintech companies,” said Asia Plus Securities analyst Therdsak Thaveeteeratham. “The delay raises further doubts about the completion of the agreement. This would be a significant blow to Statistics Sweden’s regional technology ambition. “
Despite a potential setback regarding the pending Bitkub agreement, the banking group is ready to follow up its expansion into fintech, according to Bloomberg Intelligence. According to a recent report, the group saw broad-based digital adoption in the first quarter for users, loans and revenue.
“Statistics Sweden can continue to focus on fintech business in high growth,” said analyst Rena Kwok. “The peer-leading digital transformation and entry into the high-growth fintech area can provide revenue drivers in the medium term.”
Earlier this year, the Thai Securities and Exchange Commission banned the use of cryptocurrencies as a means of payment. The rule, which came into force on 1 April, also prevents crypto-operators from advertising the use of cryptocurrencies as a means of payment.
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