In the latest regulatory action, Thailand SEC has revoked the crypto exchange license, Huobi. Hence, the platform has issued a notice to shut down by July 1st.
Thailand’s SEC Orders Huobi To Shut Down
In May, Thailand’s regulator withdrew its permit for Huobi to offer crypto services. This was after Huobi refused to comply with the regulator. Earlier in September, the agency had suspended the platform due to system issues.
Unfortunately, it appeared the company refused to fix its platform. SEC stated that:
“The current license of Huobi Thailand has been revoked. Hence, they can no longer offer crypto services in the country.”
However, the Huobi exchange argued that it made efforts to settle regulatory issues. Unfortunately, it would have to shut down activities come July 1st. The official announcement from Huobi stated that:
“On SEC’s order, Huobi Thailand will stop all operations in Thailand. We shall close our operation permanently come July 1st, 2022.”
According to the SEC’s official announcement, it warned the exchange about its system issues in March 2021. It also allowed the exchange time to fix its customer assets, IT, and trading systems.
However, despite several assurances and further extensions, it failed to comply with the SEC’s order. As a result, the agency finally decided to revoke its license on May 17th, 2022.
Meanwhile, the exchange platform has issued a statement on its website. The notice reminds users to ensure they remove their funds from the platform.
Additionally, it added a refund address. This is to help users unable to withdraw their funds before July 1st. It is uncertain if the exchange would reapply for a license in the future.
Thailand And Cryptocurrency
In Asia, Thailand stands among the most progressive cryptocurrency nations. Besides, one of the main attractions for crypto traders in the region is tax exemption. This was after the country paused the 7% tax until 2023.
This is different from other regions like India, with high taxes on crypto gains. Although Thailand has favorable regulations for cryptocurrency exchange firms, there have been some defaulters.
Last year, the country’s regulator filed a complaint against Binance for operating without a license. In March, Thailand’s SEC banned the usage of crypto for payment purposes.
Furthermore, the watchdog issued new regulations for all crypto exchange firms. As a result, they must disclose any breach of their platform to help safeguard investors.