Thailand’s oldest financial institution is unable to accumulate the nation’s largest native cryptocurrency alternate on account of stringent crypto rules.

As reported by Cointelegraph in November 2021, SCB X Group, a subsidiary of Siam Industrial Financial institution (SCB), was set toacquire a 51% stake in Bitkub by the second quarter of 2022 as a part of a plan to turn into a regional fintech. Now issues appear to have taken a twist, because the financial institution has indefinitely postponed its plans to accumulate the favored alternate.

As crypto buying and selling continues to be hampered by regulation, SCB X has indefinitely determined to not transfer ahead with a $487 million supply for a 51% stake in Bitkub, Thailand’s main cryptocurrency alternate platform.

According to areport by Nikkei Asia on Thursday, the guardian firm of SCB, SCB X, knowledgeable the Inventory Change of Thailand (SET) that the acquisition is “nonetheless present process due diligence.” A senior official of SCB X instructed the outlet that the group does not know when the deal will probably be sealed.

The information of the reschedule was revealed earlier this month when SCB X submitted a letter to SET outlining the present state of affairs. In an announcement, SCB X CEO Arthid Nanthawithaya stated:

“Presently, the matter is within the technique of due diligence and dialogue with the regulatory our bodies. Due to this fact, the completion interval of the transaction is now prolonged.”

Thailand is thought to be one in all Asia’s most progressive crypto nations, with merchants granted tax breaks and a regulated marketplace for cryptocurrency exchanges. Regardless, Many cryptocurrency exchanges, includingBinance and Huobi, have beforehand struggled with regulatory restrictions pointers within the nation.

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Earlier this 12 months, the Financial institution of Thailand and the Securities and Change Fee (SEC) lately introduced strictercryptocurrency rules and utilization limitations to make sure that cryptocurrencies can solely be traded as property on licensed platforms. The information got here as international crypto costs plummeted and broken crypto buying and selling optimism, much more, dashing Bitkub’s aspirations of accelerating its shopper base.