Thailand’s oldest lender, Siam Commercial Bank (SCB) has abandoned the deal to acquire a controlling stake in Bitkub Online, the country’s largest cryptocurrency exchange
Cryptocurrency Exchange
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world.
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world.
Read this Term.
In a statement issued on Thursday, the bank cited unresolved regulatory issues on the part of the crypto exchanges behind its move.
“Bitkub is currently in the process of resolving various issues as per the recommendations and orders of the Securities and Exchange Commission, which are uncertain in terms of time frame in resolving those,” the bank’s statement noted.
“As a result, the buyer and the seller have agreed to terminate the transaction.”
Termination of a Major Crypto Deal
SCB inked a deal with Bitkub last November to purchase a 51 percent stake in the crypto exchange for 17.85 billion baht ($500 million). The transaction was supposed to be completed by the first quarter of 2022, but faced unexpected delays and now termination of the deal.
The Thai lender also confirmed that it conducted due diligence on the crypto company, but did not find any major problems.
“[The due diligence] process did not find any indication of significant irregularities that cannot be rectified,” a statement by Bitkub stated.
However, the termination of the deal came months after the Thai Securities and Exchange Commission (SEC) slapped a fine on the crypto exchange for violating listing rules by adding the KUB coin, its native token.
Bitkub and its two officials also faced a monetary penalty of 24 million baht for a trading manipulation that happened in 2019. Further, the regulator issued a notice against the platform last year for improving services.
“Bitkub Online’s business operations are not affected in any way and the company remains the country’s leading digital asset and cryptocurrency exchange platform with resources for executing its plans and strategies,” Bitkub’s statement added.
Meanwhile, Bitkub is also facing the impact of the decline in cryptocurrency prices. A recent local regulatory report revealed that the number of Thai cryptocurrency accounts dropped by 67 percent since the beginning of 2022.
Thailand’s oldest lender, Siam Commercial Bank (SCB) has abandoned the deal to acquire a controlling stake in Bitkub Online, the country’s largest cryptocurrency exchange
Cryptocurrency Exchange
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world.
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) for short.How Does Trading Take Place on a Crypto Exchange?Cryptocurrency trading occurs over a centralized exchange, although these crypto exchanges should be used with caution given the implications that surround the custody of new assets. Similar to the banking industry, when a crypto exchange holds cryptocurrencies of users they accrue interest and are no longer classified as client money.These provide an accessible platform for not only companies, hedge funds, and retail traders for exchanging digital currencies.Additionally, crypto exchanges serve a critical role in producing stability within the cryptocurrency sector given how the sourcing and pricing of these assets are innately volatile. One could think of a crypto exchange as an intermediary who provides a service by connecting buyers and sellers from various markets under one roof. In exchange for facilitating trades and for services rendered, a digital currency exchange generally collects a fee of an outgoing transaction that averages between 0.20% to 0.25% or will request a deposit fee that has been known to be as high as 11% for credit card deposits. Crypto exchanges may also support the exchange of crypto tokens, such as the Binance Token, which is ranked as the 9th most valuable cryptocurrency in the world.
Read this Term.
In a statement issued on Thursday, the bank cited unresolved regulatory issues on the part of the crypto exchanges behind its move.
“Bitkub is currently in the process of resolving various issues as per the recommendations and orders of the Securities and Exchange Commission, which are uncertain in terms of time frame in resolving those,” the bank’s statement noted.
“As a result, the buyer and the seller have agreed to terminate the transaction.”
Termination of a Major Crypto Deal
SCB inked a deal with Bitkub last November to purchase a 51 percent stake in the crypto exchange for 17.85 billion baht ($500 million). The transaction was supposed to be completed by the first quarter of 2022, but faced unexpected delays and now termination of the deal.
The Thai lender also confirmed that it conducted due diligence on the crypto company, but did not find any major problems.
“[The due diligence] process did not find any indication of significant irregularities that cannot be rectified,” a statement by Bitkub stated.
However, the termination of the deal came months after the Thai Securities and Exchange Commission (SEC) slapped a fine on the crypto exchange for violating listing rules by adding the KUB coin, its native token.
Bitkub and its two officials also faced a monetary penalty of 24 million baht for a trading manipulation that happened in 2019. Further, the regulator issued a notice against the platform last year for improving services.
“Bitkub Online’s business operations are not affected in any way and the company remains the country’s leading digital asset and cryptocurrency exchange platform with resources for executing its plans and strategies,” Bitkub’s statement added.
Meanwhile, Bitkub is also facing the impact of the decline in cryptocurrency prices. A recent local regulatory report revealed that the number of Thai cryptocurrency accounts dropped by 67 percent since the beginning of 2022.
Source
