SCBX 'did not seek BOT nod' for Bitkub stake deal
SCBX Pcl, the "mothership" company of SCB Group, never officially sought permission to buy a 51 per cent stake in BitKub Online, the Bank of Thailand (BOT) has said.
The BOT deputy governor for stability of financial institutions, Ronadol Numnonda, said on Monday that the central bank had been officially informed about the cancellation of the deal.
He said that both companies mutually terminated the deal due to business reasons.
Ronadol said that BOT focuses on developing financial innovations while also regulating the overall stability and security of commercial banks in their governance, sufficiency of capital, risk management and its effects, and protection of customers .
Speaking about the BOT regulation that allows commercial banks to invest only up to 3 per cent of their capital in digital assets, he explained that the objective was:
- Allowing commercial banks to have flexibility to invest in bringing innovations to provide service to customers with more efficiency
- Allowing digital asset businesses in the country to grow gradually, and to restrict risks that might affect trust in commercial banks
- Allowing commercial banks to invest or manage their resources carefully
The BOT believes these objectives will eventually be beneficial to users and the development of innovation in the Thai financial sector, he said.
He said that commercial banks that want to establish a subsidiary related to digital assets must first seek permission from the BOT.
Ronadol added that the regulations were not aimed at any specific deal but to regulate the risks to the overall financial system.
SCBX last Thursday announced that the group and Bitkub Capital Group Holdings had reached a mutual agreement to terminate their proposed investment of 17.85 billion baht for a 51 per cent stake in Bitkub Online.
