Monday, December 6

Thailand’s Second Largest Bank Buys the Country’s Largest Bitcoin Broker

The bank race to work with Bitcoin remains fierce, this time around one of Thailand’s biggest banks, Siam Commercial Bank (SCB) now owns 51% control of the country’s biggest exchange, Bitkub. The acquisition will be completed after regulatory approval.

Profitable and disruptive, this sector is gaining the attention of heavy investors, such as banks, due to its high demand, as well as its easy adaptation to new trends such as altcoins, NFTs and even currency initial offers offered by the exchanges themselves.

As Bitcoin has no borders, this is a phenomenon that is happening in several countries around the world, especially in the US where the volume of transactions is higher. However countries like Brazil and Thailand are also in this race.

Small exchanges, big deals

Cryptocurrency exchanges play one of the most important roles in the industry, allowing people to trade cryptocurrencies in a practical and secure way. Ease of buying and selling is one of the main reasons for adopting Bitcoin and other currencies.

The large number of users and trading volume is also a strong attraction for investors. A good example is Coinbase, the American exchange, which after its IPO in April this year, is already one of the 200 largest public companies in the world, with a market value of 500 billion reais.

This Tuesday (02), Siam Commercial Bank (SCB), Thailand’s second largest bank, announced the future acquisition of 51% of Bitkub, the country’s largest exchange. The transaction, which is still pending regulatory approval, involved the amount of 17.85 billion Baht (local currency), equivalent to 3 billion reais. As a result, the company is now valued at around 6 billion reais.

“Bitkub is no longer just a startup and is now becoming a necessary part of the critical infrastructure for Thailand’s financial sector.”, he said Jirayut Srupsrisopa, CEO of Bitkub

bank run

As more people look to use cryptocurrency for inflation protection, outstripping the demand for gold, it’s clear that banks are in a race not to lose customers as well as gain new ones.

This phenomenon can be seen in a number of countries, particularly in the US where industry giants such as Bank of America are launching bitcoin custody solutions. Fact that happens after many of them have criticized Bitcoin for so many years.

In our country, Banco do Brasil included questions about cryptocurrencies in its national competition. Showing the need to be up to date on this technology that is changing the world. In addition to BTG Pactual, the first Brazilian bank to sell cryptocurrencies to its customers.