Thailand’s second-largest bank, Kasikornbank (KBank), has demonstrated a bullish fervor for blockchain technology by acquiring a 97% stake in Satang Corporation Co Ltd. The acquisition, valued at 3.7 billion Baht ($103 million USD), solidifies KBank’s foray into the digital asset trading space. Satang Pro, the crypto exchange operated by Satang Corporation, is one of the few exchanges in Thailand that is regulated by the region’s Securities and Exchange Commission (SEC).
KBank, boasting assets worth $120 billion, has been actively investing in digital asset firms. March 2022 saw the establishment of “Unita Capital,” a subsidiary dedicated to this investment. Orbix Custodian and Orbix Invest, both entities in the crypto industry, are now part of KBank’s portfolio. The bank also has subsidiaries such as Orbix Technology and Innovation, which focuses on blockchain infrastructure and development.
Thailand’s Regulatory Environment for Cryptocurrency
Thailand’s regulatory stance on cryptocurrency is mixed. While the Ministry of Tourism banned crypto’s use for payments in March 2022, the Ministry of Finance has advocated for tax breaks and incentives for ICO promoters. Additionally, last year saw the elimination of a 7% VAT on crypto exchange trading.
Satang Pro’s compliance with the SEC regulations is noteworthy, although it faced civil sanctions for fabricating trading volumes, alongside several other exchanges. These actions cast a cloud over the reputation of crypto exchanges in the country.
Thailand’s Growing Institutional Interest in Cryptocurrency
Thailand has seen increasing institutional interest in cryptocurrency. Siam Commercial Bank (SCB), KBank’s competitor, had intended to acquire BitKub, Thailand’s largest exchange, for $500 million in 2022. However, unresolved regulatory issues led to the cancellation of the deal. Additionally, the appointment of Srettha Thavisin, a pro-crypto politician, as Prime Minister further highlights Thailand’s evolving attitude towards digital assets. Thavisin’s previous involvement in a $225 million fundraiser for XSpring Capital during his tenure as CEO of Sansiri, a real estate giant, reveals the growing acceptance of crypto within influential circles.
