Thailand’s SCB abandons $500 million deal to buy crypto exchange Bitkub

Thailand’s oldest bank, Siam Commercial Bank, announced on Thursday it is abandoning its $500 million deal to acquire Thailand crypto exchange Bitkub, according to a press release. 

The cancellation of the acquisition comes only a month after the Thai Securities and Exchange commission ordered Bitkub to review its listing process of KUB coin on its exchange. 

SCB said the crypto startup needed time to fix regulatory issues, per the release. 

The bank planned to acquire 51% of Bitkub for around $500 million as part of building out its digital strategy.  

The deal was announced in November and was expected to be completed by the first quarter of this year, pending regulatory approval. 

This isn’t the bank’s first push into crypto. It already operates a venture capital unit called SCB 10X that invests in blockchain and decentralized finance (DeFi) startups.

"Bitkub is currently in the process of resolving various issues as per the recommendations and orders of the Securities and Exchange Commission, Thailand, which are uncertain in terms of time frame in resolving those issues," SCB said in the release. 

"As a result, the buyer and the seller have agreed to terminate the transaction," it added. 

SCB emphasized it remains committed to implementing the strategic plan to enter the blockchain technology and digital asset business in the release. 

The Block Research’s recent report shows that M&A transactions are on pace for a record year. But several big deals, such as Galaxy Digital’s acquisition of BitGo and PrimeBlock’s merger with SPAC 10X Capital Venture Acquisition Corp II have fallen through.