Link exchange

Huobi to Permanently Shut Down Crypto Operations in Thailand

Huobi’s Thai unit is expected to cease operations by July 1, after its operating license was revoked by the Thai Securities and Exchanges Commission (SEC).

Thailand’s SEC revoked Huobi’s license in May after it failed to comply with local regulations. The permanent shutdown orders come nearly eight months after regulators suspended the exchange’s services in September.

The exchange said it had attempted to resolve regulatory issues, but would have to halt trading due to SEC orders.

“Due to the SEC decision, Huobi Thailand is no longer a licensed digital asset exchange in Thailand. We will permanently shut down the platform on July 1, 2022.

The official statement from the Thai SEC revealed that the crypto exchange was first warned of its inadequate system measures in March last year. The crypto exchange also got several extensions to fix its trading system, the Client Asset Retention System. and information technology systems, but despite multiple extensions and assurances, the crypto exchange failed to comply with SEC regulations.

So, after a thorough review of the series of breaches and failure to resolve the issues, the regulator decided to permanently revoke the digital asset trading license on May 17, 2022.

“The Treasury Secretary, on the recommendation of the SEC, found that Huobi continued to violate and fail to comply with the terms of the SEC order. Huobi’s digital asset trading license in the category of a digital token exchange is revoked, effective May 17, 2022.”

Related: Thai SEC Bans Crypto Payments, Seeks Disclosure of System Failure from Exchanges

The crypto exchange posted a notice on its official Thai platform website, reminding customers to withdraw their funds and also left a refund address to contact in case users do not withdraw their funds before the permanent closure.

Huobi did not respond to Cointelegraph’s requests for comment at press time.

Thailand is considered one of the progressive crypto nations in Asia with tax exemptions for traders and a regulated environment for crypto exchanges. However, many crypto exchanges in the past have had issues with regulatory guidelines, including Binance.

Earlier in March this year, the Thai SEC banned crypto as a means of payment and also announced that crypto exchanges must disclose failures in their system to ensure user protection.