Analysts Warn Regulation Could Affect SCB Bitkub Deal

[webfact]

 

by Krajangwit Johjit

    

BANGKOK (NNT) - Analysts have warned that the Siam Commercial Bank’s investment deal in Bitkub Online might be affected by the recent regulation proposed by the Bank of Thailand (BoT) to limit investment by commercial banks in digital asset businesses.

 

The central bank is considering new rules governing subsidiaries of commercial banks’ investments in digital assets, including allowing them to invest up to 3% of their capital in such businesses. With this new rule, the recent 17.85-billion-baht investment deal by SCB in Bitkub might be affected since 3% of SCB’s capital would be about 12.6 billion baht.

 

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Analysts at Asia Plus Securities (ASPS) said the new regulation’s possible calculation methods could compel SCB to negotiate a lower price with Bitkub or postpone the deal, with other investors following suit to comply with the criteria.

 

The ASPS analysts are, however, optimistic that the transaction can still be accomplished, similar to how the central bank allows SCB to invest 7% of its capital in fintech. They noted that the central bank may consider pushing or revoking the limit if local digital asset businesses meet corporate governance and market conduct standards.

 

BoT said the new regulation, which could go into effect in the middle of 2022, allows for greater business flexibility while also upgrading supervision to keep up with changing risks.

 

-- © Copyright NNT 2022-03-26

 

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[ukrules]

9 minutes ago, webfact said:

Analysts at Asia Plus Securities (ASPS) said the new regulation’s possible calculation methods could compel SCB to negotiate a lower price with Bitkub or postpone the deal

Now I see the why behind this.

[Excel]

Some major shareholders might not like that to happen !!

[mtls2005]

1 hour ago, Excel said:

Some major shareholders might not like that to happen !!

The largest shareholder anyway.

 

In the vein of the Rabbit Card, how about a Dragon Coin?