BANGKOK (Reuters) – Thailand’s oldest lender, SCBX Pcl, said on Thursday it was pulling out of a $500 million deal to buy crypto exchange Bitkub, saying the startup needed time to resolve regulatory issues.
“Bitkub is currently in the process of resolving various issues in accordance with the recommendations and orders of the Securities and Exchange Commission, Thailand, which are uncertain in terms of the timeframe for resolving these issues,” SCBX said in a statement.
“As a result, the buyer and seller have agreed to end the transaction,” he said.
SCBX said it performed due diligence on the company and found no abnormal issues.
The announcement comes after the Thai Securities and Exchange Commission last month ordered the crypto platform to review the listing process for the KUB coin on its exchange.
SCBX in November announced a plan to acquire 51% of Bitkub for 17.85 billion baht ($497.77 million), as part of a major digital strategy.
The bank said it was “engaged in strategic plans to grow in businesses related to blockchain technology and digital assets.”
Bitkub did not immediately respond to a Reuters request for comment.
($1 = 35.8600 baht)
(Reporting by Chayut Setboonsarng; Editing by Mark Potter)