Topic: The Largest Crypto Exchanger in Thailand has been acquired by Commercial Bank (Read 302 times)

This commercial bank already knew what it was doing. Certainly, they won't do this if they aren't knowledgeable about the risks and all the possible repercussion of their decision. For sure, they already assessed the risks and made a strategic planning before they have made the acquisition of crypto exchange. For a commercial bank, a central organization, their moves and actions should be well calculated and thought of to avoid untoward incidents such as losses. I think they have prepared and thoroughly checked whether it would be beneficial to them or not. They wouldn't do it if it would not give them significant impact, right?

This is a courageous move for a central organization. Surely, they know the possibilities of hacking and all the other schemes and crypto before doing this. Hence, I commend them for taking a bold move. Stabilization of profit and security enhancement would definitely be on their list to provide a better services for the customers as well as for their company's welfare. They would have a hard time at first figuring out how to make the collaboration of entirely two different things harmonious, but after that, they could earn a lot of profit. They just have to hire an expert in the field of crypto and let them do the work for the betterment of their company  After all, business is business. They have to make things on their favor so that the risk they have decided to take would be worth it. 

I look with suspicion at the central banks’ acquisition of cryptocurrency exchanges. I do not think that banks seek profit because of this acquisition, but I fear that they have other goals beyond, for example, narrowing the areas of decentralization and privacy by acquiring crypto sectors by imposing KYC, for example, As you know, third-party services can eliminate the privacy and decentralization of cryptocurrencies by enforcing KYC.
However, I hope my words are not true and that banks and governments are starting to realize the importance of Crypto and that it has become a reality for them to adapt to.

Talking about users, many indicators are assessed.  From the news, it is actually not clear whether the bank's management will run the exchanger from a management perspective.  However, based on what I understand that investors or shareholders should not be the same and technically involved in management because it would violate the rules of good corporate governance.  Management and shareholders should not be the same.  Regarding user data that is KYC and will be easily tracked by banks, it has actually happened on well-known exchanges such as Binance and legitimate exchanges in my country must also be KYC, meaning that it is not a new issue to consider.  However, in my opinion, here the bank is only an investor for the benefit of profit.  The other elements are only supporting.

Maybe it is not a bad idea, because when an exchange is adopted by a bank that means the exchange will be linked to the bank and users who are making use of the bank will be able to find it easier to trade on that exchange and withdraw their money straight to the bank without having much delay on it.

But, people who prefer decentralized exchanges and maintaining their privacy are not going to like such an exchange, because since it has been acquired by a bank the exchange will now start becoming centralized if it is not, and they will start requiring information about users when they’re registering on their platforms. And there wouldn’t be anything like peer to peer or decentralization on the exchange. So, it is up to the users whether it is going to suit their needs or not.

Banks is totally opposing on what crypto exchangers been doing but this time they had acquired it? For sure this would be talking about more profits because they do see
significant benefits that they could get since people are now focusing mostly on decentralization and its impossible that they are acquiring it for nothing since we know
on whats their stance against these platforms which are totally dealing with crypto which is the  main enemy of centralization.
There's always a motive on each action which had been done.

I doubt that it was an easy decision to make, and it could be a bit of a problem if things go south as well. However we are talking about a cash cow here. A crypto exchange rarely ever loses money, has a very low cost of operations and could make a ton of money if they are liked.

In my nation there are so many of them, it is a great way to make money and they spend every single income they have back into marketing to grow bigger and have a bigger market share, because it is such an easy way to make money. Sure if you are spending your money into marketing then you are not profiting, but they are growing so even if it is not profit they are getting, it is the value of the company that grows bigger.

I myself still don't believe whether this is purely as a pilot bank or an experimental effort to support the cryptocurrency system or just purely looking for profit that may be abandoned after that because we know until now most banks corner crypto

Joining the favourite instead of going against it is a smart move that is what actually happened because if cryptocurrencies still exists for another 10 years or so most of the banks in this world will be closed by that time due to lack kf transactions and customers so they are finding the ways now to work alongside cryptocurrency payments.

I figured regulation is the way most countries can push back against crypto because an outright ban is hard to implement and more likely for people to circumvent. If you make the case that your coin should be centralized through digital exchanges ran by central banks, I'd imagine new adopters to crypto would be more inclined to give up control of their private keys to a 3rd party. There's a lot of money to be made through crypto exchanges unfortunately, so central banks wanting a piece of it was expected. The solution, obviously, is to never use exchanges but new users will still find the platforms attractive.

I think the fact that banks get interested in exchanges and buy them doesn't mean that they're getting crypto-friendly. It means that they're not blind, and they see how interested people are in trading, and how profitable crypto exchanges are. So it's an investment for them, basically, to buy an exchange and get those profits, but it doesn't mean they believe in Bitcoin or other cryptos, support them in any way, recognize them as money or anything. It can be a very profit-oriented decision of buying what seems financially promising.

I think everyone around the world has seen that VCs are taking a keen interest in cryptocurrency markets and are putting their money in budding crypto porjects. The large commercial banks don't want to lose this opportunity, having an exchange operating at the local level is very useful as you have to comply with laws of the local country and local people feel easier to trade on it and even fiat withdrawals are too easier, also marketing and advertisement for these exchanges becomes much easier as they have to advertise merely on a few platforms like television which the whole country watches and you can easily get new users onboard. 

When I read your post I was confused at first where you said that the exchange was ordered to shut down for about 5 days. It made me think that the exchange was completely shut down and you meant to say that it was shut down 5 days ago, not until I clicked the coindesk link that you provided and read the article itself and it made me understand that the exchange was ordered to shut down for five days to iron out the bugs that was affecting their website.

I don’t think the bank would just rush in and pay for majority stake in a cryptocurrency exchange if they don’t have a clue on what cryptocurrency is all about. Before taking a step like this I believe that they must have made some research and understood everything on how cryptocurrency works, before they decided that it was right for them.

Definitely, they have done their homework before they venture into this kind of decision, because we are talking a huge amount of money. They won't go into this business if they know they will be on the losing end. With their move, we are expecting that they will be more open to crypto businesses in their country and that means, more crypto users, which of course, is always welcome in the community. This news is an encouraging news for their neighboring countries which are not yet open to this concept.

This will be a trend.

A very major commercial bank in Australia has also started to branch off into the crypto exchange business.

The best path forward for these industry giants would inevitably be through acquisitions/mergers. It gives them a technical edge as well as an awareness advantage. Certainly great news for the crypto industry.

Yeah it seems OP's concern is about security of the exchange and I am also confident a bank level management can easily run a crypto exchange more smoother. When a bank is entering into a all new business definitely they might have done all the required field work about what to do and how to do. So, how they are going to run a crypto exchange definitely is an unnecessary question from an enduser side.

I am also expecting any announcement from Thailand government about legalizing bitcoin as a legal tender which might help triggering very strong bull run in this crypto space for sure. Anyone could enlighten me on such possibilities?

This is because they see the benefits of acquiring the crypto exchange, I think they understand the risks that will be faced because the risks is always there in every kind of business not only in the crypto world.
If this is successful it will be followed by many commercial banks in other countries which is crypto friendly.
I actually curious if this action would make crypto more centralized? because in my opinion with the power they have they are able to control many things about crypto, especially in that country.

You do not have to think twice about the decision of Banks to buy majority shares in Exchanges, because it is a power play. A majority share will give them control over those companies and they will simply transition those exchanges into Banks. (If you cannot beat them, you buy them..right)

We will see a lot more of these transactions in the future, because Banks will never miss an opportunity to make a profit and to exploit their clients with high fees. (Banks will simply use their money to avoid disruption) 

It is true that every innovation will create disruption, so the massive use of cryptocurrencies as an alternative to expensive cross-border bank transfer fees is the current solution.  As a result, commercial banks will suffer losses for the profits they should receive and even people prefer crypto as a means of cross-border transactions.  Quick and easy.  At present it may be difficult for commercial banks and almost impossible to replace their services in crypto because their basis is fiat but acquiring a crypto exchange is the most likely way for them to make profit from these crypto services.

Once banking networks believed crypto might eat our profit. Even several banks revealed details on loss due to the increase in the usage of cryptocurrencies on cross border transaction needs. Now looking the growth of cryptocurrency market the only way to benefit out of it is through businesses. As a result the banking networks are now focusing on the acquiring of cryptocurrency exchanges. Even the banking network require high security. So, when something gives them profit surely they'll have more security on it.

I agree bro..they are afraid of inter-leaving opportunities at least there is an additional profit in the wild main profit sector (interest lending and borrowing or deposit services) even though they have shares that are traded and traded..not like crypto which is flexible and decentralized..will it help when commercial banks facilitate crypto like bank services in general? Of course this will make me happy bro


maybe it will be a little side when banks see long-term profits..become a new style of investing..there are several advantages of crypto over other investment instruments

It's true what you said, Indonesia, I think it's quite welcome because it's legal..

there is 1 news that is quite familiar in my country which is covered by the newspapers.. one of them is exchanger zipmex which received a second disbursement of funds from Krungsri Finnovate, a company under the supervision of Bank of Ayudhya in Thailand. After getting series A funding sources last January, now series B fundraising is being given again, Friday (3/9/2021)

please read the full source

https://www.liputan6.com/bisnis/read/4648790/bursa-asset-digital-zipmex- Accept-Suntikan-dana-dari-thailand-usd-41-juta

hopefully other banks can make cooperation like this..