The Largest Crypto Exchanger in Thailand has been acquired by Commercial Bank

[oHnK]

After the government of El Salvador accepts Bitcoin as their legal tender, then there are much other positive news that enlivens crypto exchanges around the world, one of which is the approval of the Bitcoin ETF by the SEC,

Governments and investment regulatory authorities have slowly begun to understand the meaning of crypto which is not as bad as they previously thought.

Today, in Thailand, the country's oldest bank has acquired a majority stake in the country's crypto exchange. What really intrigues me is why commercial banks acquire crypto exchanges? If the reason is purely business profits that have been analyzed previously, that's a common thing. But are they sure about the decision? The level of security that is very vulnerable by hackers and the highly volatile crypto market, is it in line with their core business which prioritizes stability?

The challenge is after the acquisition, the exchange experienced a bug problem until it was closed 5 days at the decision of the SEC of its country.

What do you think?

Source: https://www.coindesk.com/business/2021/11/02/thailands-oldest-bank-acquires-majority-stake-in-countrys-largest-crypto-exchange/

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[sheenshane]

I have doubted that the owner of this commercial bank already knew how crypto works.

But I think they might face difficulties upon looking for a platform where they can trust to hold their fund and it seems Thai cryptocurrency exchange Bitkub to their place is one of those reliable and can be trusted as they think.  There could be always a risk and making money isn't a guarantee here and Banks understand the risk, even there are people who trust banks and save their money there and I think that was the concept that the bank of Thailand was figured out.  Therefore, before they face this potential risk they're already aware of it.

Sounds good, this could be another first step and other banks will do the same, we know how much we can get profit in staking, how much more if you have a lot of capital to invest, they are playing money here that could be potentially an easy profit.

[oHnK]

Sounds good, this could be another first step and other banks will do the same, we know how much we can get profit in staking, how much more if you have a lot of capital to invest, they are playing money here that could be potentially an easy profit.

While other banks may be stuck with their centralized system, Siam Commercial Bank is one step ahead.  Because when new technologies and innovations disrupt the previous system, we should not be against and regard the innovation as a threat, but the best attitude is to study it well and adapt.  SCB has gone through that process while other banks may feel egotistical that fiat will be impossible to replace, meanwhile SCB has acquired a 51% stake in its country's crypto exchange.  This means that now they have a new line of business from innovation which is a challenge for the current monetary system.

[mk4]

It's safe to assume that entrepreneurs/businessmen know how difficult it is to make an exchange secure; but the fact is, it's safe to assume that running a cryptocurrency exchange is really really profitable if ran well, hence why they did the acquisition. The same way how Warren Buffett's Berkshire Hathaway acquired Barrick Gold, a gold mining company, despite the fact that he's not a fan of gold. What matters to them mainly is the cash flow.

[avikz]

Possibly Thailand is the second Asian nation who is friendly about bitcoin. It's a positive news that a commercial bank has acquired majority stakes in a crypto exchange. I am happy that the general negative perspective about cryptocurrencies is changing - slowly but surely!

I am sure it's a concious decision by the bank because a commercial bank is usually listed in stock market and they can't take decisions out of blue. This decision must have been approved by the shareholders body as well as the regulatory bodies. So it's a positive news!

[fiulpro]

I think this might be positive and negative both. For example when we talk about the negative side :
There is always a fear of manipulation

When we talk about the positive side :
We might see many more banks and centralized exchanges coming forward to doing the same making the crypto market and the whole centralized banking system more integrate.
Which could provide us with better results in the future, faster transactions, stronger connections and more approvals from other sides as well. This can increase the scope of cryptocurrencies. The people who are already engaged with the banks will have advantages in lieu of trading etc..

This can be a mutualistic relationship between the two of them and can go further for a really long time. Therefore I think this might be really good.

[Haunebu]

The bank which you are talking about could be struggling for different reasons which is why they decided to support BTC and other popular cryptocurrencies in order to acquire profits in the long-term.

If this is really the case, it is a smart move considering the fact that Thailand doesn't really have a tough stance against cryptocurrencies.

[iv4n]

If anyone wondered about how banks will adapt to the crypto future now you know... they will simply buy or make their own crypto exchange! Of course, that can be some other service as well, but they know where the money is!

The bank which you are talking about could be struggling for different reasons which is why they decided to support BTC and other popular cryptocurrencies in order to acquire profits in the long-term.

If this is really the case, it is a smart move considering the fact that Thailand doesn't really have a tough stance against cryptocurrencies.

Maybe they are struggling for different reasons, or maybe they have money and they wish to invest in the future! For whatever reason they chose to do it I believe it will pay off for them one day, and it's definitely a good thing for crypto users over there!

[paxmao]

I am not aware of the politics in Thailand but this news is not that surprising. The countries in the region present an inordinate amount of unbanked people and, at the same time, a few with good access to foreign currency but mostly all the rest having to deal with their local coin, which in essence tend to be quite shitty. 

But, probably the main thing here is how the local regulator has allowed this purchase. Risky business tend to go with greasing hands.

[Hydrogen]

Today, in Thailand, the country's oldest bank has acquired a majority stake in the country's crypto exchange. What really intrigues me is why commercial banks acquire crypto exchanges?

Does anyone remember poloniex being acquired by circle which was said to have connections to goldman sachs in 2018.

Poloniex Acquired By Goldman Sachs-Backed Circle

Circle, a peer-to-peer payments company backed by investors like Goldman Sachs and Baidu Inc. has acquired the popular U.S cryptocurrency exchange Poloniex. As one the most well-funded startups in the blockchain space, Circle has now repositioned itself to be one of the leading exchanges as well.

https://cryptobriefing.com/poloniex-acquired-goldman-sachs-backed-circle/

Ethereum was known to be affiliated with JP Morgan.

Craig Wright's startup had $200 million invested in it (possibly by banks).

There is a long list of events similar to these that have occurred over the years.

....

Does anyone remember these things happened, aside from myself.

[Darker45]

What really intrigues me is why commercial banks acquire crypto exchanges? If the reason is purely business profits that have been analyzed previously, that's a common thing. But are they sure about the decision? The level of security that is very vulnerable by hackers and the highly volatile crypto market, is it in line with their core business which prioritizes stability?

Well, there are more than one possible reasons, but I think it is more business than being a true fan of crypto. Commercial banks are always after the money. So it is very possible that they will enter into the world of crypto because it is what is trending right now. There's money there. So this is not actually intriguing. There are already many banks that have joined the cryptocurrency market in one way or another.

Banks don't have to know the technical and security sides of crypto. They have the money to hire the best people who could handle it for them.

As to volatility, crypto exchanges don't lose because of it. They are always gaining.

[noorman0]

Acquiring some stakes does not mean taking over management, the exchnage is still managed by old people. After all, the stake buyer is the oldest bank that may have been a trusted service to local residents for years. Of course it will give a special impression.

Talking about profit, it seems that the bank made the right decision. I saw their coin price grow by 125% in the last 24 hours. An instant profit.

[Ucy]

Part of the purpose of Bitcoin or True Cryptocurrency is to help us depart from the old corrupt, opaque, lawless and centralized system not to hand people back to the system. It's really surprising sometimes how people can be used to defend the system that enslave them. No matter how hard you scream in their ears to prevent them from being charmed or hypnotized and taken back into their slave camps as run away slaves, they wouldn't listen because the meat or shiny things in what is used to trap them are too strong for them to resist

[aoluain]

It's safe to assume that entrepreneurs/businessmen know how difficult it is to make an exchange secure; but the fact is, it's safe to assume that running a cryptocurrency exchange is really really profitable if ran well, hence why they did the acquisition. The same way how Warren Buffett's Berkshire Hathaway acquired Barrick Gold, a gold mining company, despite the fact that he's not a fan of gold. What matters to them mainly is the cash flow.

Makes sense for sure and a crypto exchange could yield bigger profit percentages
than traditional FIAT banking.

It looks like they have aligned themselves with the crypto space to take advantage of
the incoming interest in crypto and to be potentially offer FIAT style services in the
crypto space similar to what Coinbase announced yesterday.

As with Coinbase it looks like they see now huge growth in crypto

[Coinbase] Bitcoin Collateral = FIAT Loans

[Dread Pirate Roberts]

Today, in Thailand, the country's oldest bank has acquired a majority stake in the country's crypto exchange. What really intrigues me is why commercial banks acquire crypto exchanges? If the reason is purely business profits that have been analyzed previously, that's a common thing. But are they sure about the decision? The level of security that is very vulnerable by hackers and the highly volatile crypto market, is it in line with their core business which prioritizes stability?

The challenge for companies that are already large and well-known is to provide comfort and security for sure. even for exchanges that have been trusted, have experienced problems with asset security and user wallets. I don't really know about the Thai bank company. So I can't judge whether they will be completely safe or not. I hope they hire professional security. because it involves a lot of people's money.

[Uang_kartal]

After the government of El Salvador accepts Bitcoin as their legal tender, then there are much other positive news that enlivens crypto exchanges around the world, one of which is the approval of the Bitcoin ETF by the SEC,

Governments and investment regulatory authorities have slowly begun to understand the meaning of crypto which is not as bad as they previously thought.

Today, in Thailand, the country's oldest bank has acquired a majority stake in the country's crypto exchange. What really intrigues me is why commercial banks acquire crypto exchanges? If the reason is purely business profits that have been analyzed previously, that's a common thing. But are they sure about the decision? The level of security that is very vulnerable by hackers and the highly volatile crypto market, is it in line with their core business which prioritizes stability?

The challenge is after the acquisition, the exchange experienced a bug problem until it was closed 5 days at the decision of the SEC of its country.

What do you think?

Source: https://www.coindesk.com/business/2021/11/02/thailands-oldest-bank-acquires-majority-stake-in-countrys-largest-crypto-exchange/

right decision to take a step forward from other countries..with Bitcoin..

in contrast to some countries whose citizens openly own bitcoins.

In my country, there is no domestic bank or central bank claiming to acquire bitcoin, only as a medium of exchange as a 3rd party after market/exchange.

they know blockchain is an economic revolution..
Financial institutions like it or not have to follow in the footsteps of this technology.

and forcing them to understand and accept the owner's risk not only makes them profitable there are times when the graphics are not friendly but this is the Future

[oHnK]

Acquiring some stakes does not mean taking over management, the exchnage is still managed by old people. After all, the stake buyer is the oldest bank that may have been a trusted service to local residents for years. Of course it will give a special impression.

Talking about profit, it seems that the bank made the right decision. I saw their coin price grow by 125% in the last 24 hours. An instant profit.

51% stake majority has been acquired by them, it means they have a right to change the management although I don't know if they change the management or not. If you think about profit, yes, I'm sure that investing in crypto will provide very high returns and risks as well. Many companies that previously lost money have become successful after investing in crypto. Aren't we too? The highest profit of our asset portfolio is in the crypto market.

[MNbag]

Expect Bitcoin, and by extension crypto, to become more corporate in the following years as the entryways to the crypto world become manned by the financial world.

Expect a neutralization of the privacy benefits of cryptocurrency, increased regulation and the shutting down of decentralized currencies as they prepare to push crypto into fully-fledged security similar to stocks, bonds and futures.

This will have the same effect as government regulation

Satoshi specifically started up Bitcoin to avoid the very same financial system that caused the 2008 recession via providing a brand new way to do business in. This development goes against that.

That is my opinion.

[vabchgent]

Acquiring some stakes does not mean taking over management, the exchnage is still managed by old people. After all, the stake buyer is the oldest bank that may have been a trusted service to local residents for years. Of course it will give a special impression.

Talking about profit, it seems that the bank made the right decision. I saw their coin price grow by 125% in the last 24 hours. An instant profit.

Well, if you acquire a decisive majority in a business you essentially also control the management. That is just how equity works. If you have the biggest say in a company financially, you can just fire the management if they don't act in the best if your interest. The management knows it, doesn't want to get fired so mostly they serve your interests. That is also duty by the way to some degree and that is also why there is the separation of management and control, which eventually boils down to management being controlled. By whom? By those who have a stake in the company big enough to substantially raise their voice and take influence.

[RealMalatesta]

Today, in Thailand, the country's oldest bank has acquired a majority stake in the country's crypto exchange. What really intrigues me is why commercial banks acquire crypto exchanges? If the reason is purely business profits that have been analyzed previously, that's a common thing. But are they sure about the decision? The level of security that is very vulnerable by hackers and the highly volatile crypto market, is it in line with their core business which prioritizes stability?

This is really a strange situation compared to the practices of my country.

I am sure, cryptocurrencies are not legal tender in Thailand but at least the government ha cleared about their stand for being neutral? Not sure about that. (I remember when China was banning all crypto related activities, few countries like Taiwan or Indonesia announced like inviting crypto enthusiast for running crypto business but not sure Thailand was one of them).

A bank is acquiring crypto business means that the government is positive about crypto related business.
I hope crypto will find another round of boom with the help of any positive announcement from Thailand government.

And I guess running a crypto exchange for a bank is not a big deal among all security vulnerability. So, you may not concern on that.