According to a statement posted on Thailand’s Securities and Exchange Commission website, the agency recommends the Minister of Finance consider revoking Huobi operating license.
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Thailand’s SEC wants to revoke Huobi Thailand’s license
The Thai SEC ordered the crypto exchange to continue a suspension of its services in the country. The SEC gave it three months to return or buy back customers’ assets.
These actions come after an investigation into the exchange earlier this year. Huobi Thailand has failed to fix system flaws identified more than five months ago, despite several deadline extensions.
Between February 2021 and March 2021, the regulators found the exchange with an inadequate management structure and operations. These findings are following the relevant announcements and rules previously set by the regulators.
“Huobi Thailand offers digital asset trading services with local legal and compliance standards,” Huobi Global said in a WeChat message. “Due to product changes and to better serve local users with enhanced application and trading services, Huobi Thailand has temporarily decided to suspend trading service.”
According to Thai law, Huobi initially had until April 1 of this year to make the changes. After not complying up to the set date, the exchange asked for an extension. They then had until August 31, which they also missed.
In June, Huobi Thailand suspended its services and asked users to withdraw their assets. It was preparing to move its operations under a new name, DS Exchange, the Bangkok Post reported. Saturday’s SEC notice said Huobi (Thailand) Co. is now called DSDAQ (Thailand) Co. At the September meeting, the regulator found that Huobi Thailand had failed to fix the problems. It denied the exchange’s request for another extension.
Huobi was the fifth exchange for obtaining a digital asset trading license in Thailand. That was granted in July 2019. The Thai SEC released new rules for crypto custodians in late August.
Federal financial regulators in Thailand are looking into the crypto market. Earlier this summer, the Thai SEC filed a criminal complaint against Binance. The petition is for the operation of the company in the country without the proper license. However, this is not particularly unique to Binance. Globally, Binance has had a rough summer. Exchanges shut down operations in different countries in an attempt to comply with local regulations.
However, Binance is not the only crypto-related venture affected by the Thai surveillance regime. In May of this year, Thai regulators forced direct KYC. According to government officials, it is an anti-money laundering effort. However, the global crypto community watches as governments catch up in space.
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