Huobi’s Thailand unit, a Hong Kong-listed operator of a cryptocurrency platform, is set to close its operations by July 1, after its operating license was revoked by the Thai Securities and Exchanges Commission (SEC).
The Thai SEC revoked Huobi’s license in May due to its failure to comply with the local regulations. The permanent closure orders follow a September suspension by the regulators.
Despite trying to correct regulatory issues, Huobi said they have to wind down operations following SEC orders.
“Due to the SEC decision, Huobi Thailand is no longer an authorized digital asset exchange in Thailand. We will be shutting down the platform permanently on July 1, 2022.”
It was revealed by the official statement from the Thai SEC that the crypto exchange was first warned about its insufficient system measures in March last year. The crypto exchange failed to comply with SEC regulations despite multiple extensions and assurances.
“The Finance Minister, on the recommendation of the SEC, considered that Huobi still violated and failed to comply with the SEC’s order conditions. Digital asset business license in the category of a digital token trading center of Huobi is revoked, effective from May 17, 2022.“
Customers were reminded to withdraw their funds on its official Thai platform website and a refund address was left to contact in case users fail to withdraw their funds before the permanent closure.
Thailand is considered as one of the most progressive crypto nations in Asia with tax exemptions for traders and a regulated crypto exchanges environment. Binance are among many that has faced issues with the regulatory guidelines in the past.
The Thai SEC banned crypto as a payment method and also announced that crypto exchanges must disclose their system failures to ensure user protection earlier in March this year.