Thailand’s oldest lender, SCBX Pcl (SCB.BK), said on Thursday it was pulling out of a $500 million deal to buy crypto exchange Bitkub, saying the start-up needed time to fix regulatory issues.
“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 timeframe in resolving those issues,” SCBX said in a statement.
“As a result, the buyer and the seller have agreed to terminate the transaction,” it said.
SCBX said it had been conducting due diligence on the company and did not find any abnormal issues.
The announcement comes after the Thai Securities and Exchange Commission last month ordered the crypto platform to review the listing process of KUB coin on its exchange.
Bitkub said in a statement that it agreed to terminate the sale so that the company could resolve pending issues with regulators and that its operations have not been affected.
SCBX in November announced a plan to acquire 51% of Bitkub for 17.85 billion baht ($498 million) as part of a major digital strategy.
The bank said it was “committed to strategic plans to expand into businesses relating to blockchain technology and digital assets.”
($1 = 35.8600 baht)