Bitkub CEO Says Acquisition Deal with SCB X is Stuck in Due Diligence

The acquisition deal between Thai-based crypto exchange Bitkub and SCB X is still in the due diligence stage. Bitkub Capital Group Holdings CEO Jirayut Srupsrisopa revealed this news during an interview with Bloomberg TV on August 1.

In the interview, Srupsrisopa said,

I can’t mention about the deal publicly yet because it’s under the due-diligence process. But everything is still in the same timeline. That’s all I can mention about the deal.

SCB X, the parent company of Thailand’s oldest lender Siam Commercial Bank Pcl, inked the acquisition deal with Bitkub in November 2021. The bank agreed to pay 17.85 billion baht (approximately $495 million) for a 51% stake in the exchange.

This agreement saw Bitkub reach unicorn status after its valuation surpassed $1 billion. Initially, the companies projected that they would seal the deal by Q1 2022.

Like Bitkub, SCB X also blamed the delay on due diligence, with the organization’s CEO, Arthid Nanthawithaya, saying,

Presently, the matter is in the process of due diligence and discussion with the regulatory bodies. Therefore, the completion period of the transaction is now extended.

Thailand Continues Enforcing Strict Crypto Regulations

This news comes as the crypto space attempts to make a comeback after a series of devastating events like Terra’s collapse sent it into a deep bear market. As a result, regulators have been increasing oversight over crypto platforms.

Thailand’s Securities and Exchange Commission (SEC) has particularly been keen on clamping down on non-compliant crypto platforms. For instance, the regulator forced Huobi Thai to shut down after revoking its license.

Bitkub has also had its fair share of troubles with the SEC. The watchdog fined Bitkub 15 million baht (around $416,533) for violating its token listing rules in May. A month later, the SEC fined Bitkub and two officials 24 million baht (approximately $666,453) for violating trading laws.

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Srupsrisopa told Bloomberg that these fines did not affect the company’s client base. He added that the impact on Bitkub was minimal. Srupsrisopa further noted that the exchange now controls almost 100% of the market after rival exchange Zipmex suspended withdrawals due to financial difficulties.

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