Cryptocurrency Exchange Huobi Thailand Closing Down in July After License Revoked

The Thai government has decided to shut down the cryptocurrency exchange Huobi after it was accused of system failures and violations. The company's trading systems, customer asset retention systems, and information technology systems are "irreparable," according to the Thailand Financial Services Authority. However, customers will be able to withdraw their cryptocurrency assets seamlessly. The Thai government will review all Huobi Thailand operations to ensure they follow regulatory requirements.

Cryptocurrency Exchange Huobi Thailand Closing Down in July After License Revoked
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Huobi Thailand's license was revoked

The Thai Securities and Exchange Commission revoked Huobi Thailand's license on July 12 after failing to meet regulatory standards regarding personnel and management. The exchange had already suspended crypto trading due to the violation of SEC rules, but the board ruled that the exchange failed to meet requirements and ordered it to return client assets until it restored its license. 

Despite the recent license revocation, crypto adoption in Thailand is growing rapidly. The Thai government recently exempted all cryptocurrency transfers from VAT until 2023, which could have sparked an explosion in crypto adoption in the country.

The SEC has revoked Huobi Thailand's operating license, making it no longer affiliated with the Huobi Global group. The firm is currently working to inform all existing customers before the closure date and has offered to contact them through email or telegram. The move will remove Huobi Thailand from the Huobi Group's legal jurisdiction and force all customers to transfer any digital assets they have on their accounts.

Thailand's Securities and Exchange Commission suspended Huobi's operations after finding deficient management systems and structures. The regulator cited many reasons for the decision, including a lack of transparency and the fact that the company is unlicensed. It has also issued contact details for out-of-reach customers. This will force Huobi to shut down the Thailand platform permanently.

Trading, customer asset retention, and information technology systems are "irreparable."

The Thai Securities and Exchange Commission recently halted services at the Huobi exchange in the country and ordered all client assets you can return within three months. The SEC investigation has been ongoing since February 2021. In a statement, the SEC said Huobi had breached local regulations related to its operations and management structure. It gave Huobi three months to return client assets. Huobi has not responded to Cointelegraph's request for comment.

The SEC said the company's trading, customer asset retention, and information technology systems are "irreconcilable." The SEC has given Huobi until the end of August to remedy its breach of regulatory requirements. Huobi Thailand's failure to do so resulted in the company's delisting, but it has been unable to comply with the order.

The Thailand Securities and Exchange Commission has ruled that Huobi's operation in Thailand is "irreparable." The Thai regulator's decision will force Huobi to return its clients' funds and close its local branch. Huobi Thailand's trading systems, customer asset retention systems, and information technology systems are "irreparable," the SEC said.

Customers will be able to withdraw their digital assets seamlessly.

Thai regulators have revoked the license of digital asset exchange Huobi Thailand after the company failed to comply with rules and regulations. As a result, the exchange has set up a refund page for customers. Huobi has also apologized to customers and the community for the short-lived Thai venture. It has since started a campaign for $100 million to attract new investors.

The regulator found deficiencies in the company's work systems and management structure, constituting a violation of governing regulations. In the end, the regulator revoked Huobi's operating license in Thailand. As a result, Huobi must return all user assets. Although Thailand is a crypto-forward nation, it has been tightening its regulatory nose to protect its citizens and ensure the safety of its cryptocurrency community.

Final Words

Above, we have told you about the Houbi exchange issues. The revocation of Huobi's licence is a significant blow for the Thai cryptocurrency industry. It is unclear why the government would ban crypto exchanges, but it is a significant step toward ensuring that the crypto industry remains regulated. Investors who are looking for easy cryptocurrency trading can use bitcoin trading software. Thailand had eight digital asset exchanges at their peak in 2022. Thailand's government has also introduced new regulations to control the crypto industry.