The Thailand unit of the Huobi cryptocurrency exchange had its operation license canceled by the country’s SEC for failing to meet the regulator’s system security criteria.
The license was issued on May 17, and the trading platform was given until July 1 to cease operations.
Huobi, a Thai company, was originally identified in March last year for insufficient system security measures. It was halted in September due to deficiencies in its client asset retention platform, information technology system, and trading platforms. The trading platform was given multiple extensions to rectify the highlighted faults, but little progress was achieved.
On the recommendation of the SEC, the Minister of Finance has ordered the revocation of Huobi (Thailand) Co., Ltd. (Huobi), which was later renamed D. Esdaq (Thailand) Co., Ltd.’s digital asset exchange business license, effective May 17, 2022, as the SEC has resolved to recommend to the Minister of Finance, due to failure to rectify the work system and personnel to be ready and by the relevant rules and conditions.
Huobi has followed all of the guidelines and has notified its clients that it will cease operations on July 1. Customers were urged to remove their monies before the deadline, and the exchange provided a contact number for anyone who did not sell their holdings before the deadline.
Despite its openness to the digital currency ecosystem, Thailand is quick to punish wrongdoers, as it has done with Thai Huobi. Following Huobi’s withdrawal from China in September of last year, the shutdown of its Thailand operation will seem like another subsidiary of Huobi that will be subject to stringent rules.