YEREVAN (CoinChapter.com) — Kasikornbank (K-Bank), Thailand’s fourth-largest banking institution by market capitalization, has acquired a majority stake in crypto exchange Satang via a newly established digital asset entity called Unita Capital.
Notably, K-Bank has invested 3.7 billion Thai baht (~$102.8 million) through its fully-owned subsidiary, Unita Capital. That marks the bank’s second-biggest initiative in the emerging technology sector; last month, it launched a $100 million tech venture fund focusing on artificial intelligence, Web3, and deep tech startups.
K-Bank’s filing shows that Unita Capital has established three new subsidiaries. That includes a crypto custody service called Orbix Custodian, a crypto fund management entity named Orbix Invest, and a blockchain infrastructure development firm titled Orbix Technology & Innovation Company Limited.
Not an Isolated Crypto Investment in Thailand Banking
K-Bank’s foray into the crypto sector is not an isolated incident within Thailand’s banking ecosystem. One of its largest competitors, Siam Commercial Bank (SCB), had earlier invested in the blockchain and cryptocurrency sector with the establishment of SCB 10X in early 2021.
Later, SCB launched a $600 million joint venture fund called the Global Disruptive Technology Venture Capital Fund. The bank further acquired a majority share in the Thai-based crypto exchange, Bitkub, only to face regulatory hurdles.
This case highlighted the intricate dance between innovation and regulation in Thailand’s crypto world.
Nonetheless, K-Bank and SCB’s endeavor into the crypto sector shows the banking system’s growing confidence in the industry. The announcements appear against the ongoing spot crypto exchange-traded fund (ETF) buzz in the US, which will likely attract $600 billion from institutional investors.
Thailand Crypto Regulation
The investments also appear against the growing crypto regulatory competition in the sector, with crypto-friendly destinations like Hong Kong, El Salvador, and the United Arab Emirates (UAE) attracting more companies.
On the other hand, Thailand has pursued strict stances against cryptocurrencies.
For instance, all digital asset activities in Thailand require a license from their securities regulator SEC. That includes crypto trading, crypto brokerage, crypto dealing, fund management, crypto exchange operation, and other SEC-determined activities under the Digital Asset Business Emergency Decree.
