Crypto exchange platform, Huobi is winding down its operations in Thailand, according to the statement by the platform. This closure is due on the 1st of July, 2022.
The whole process of closing down somehow got aggravated after Huobi got into some trouble with the local watchdog earlier last year when it was found to have violated regulations.
The reason for this move can be attributed to the revoking of Huobi’s license as an exchange. The Board of the Securities considers the crypto exchange platform an unauthorised digital asset trading centre in Thailand.
Reports from Chainanalysis supposedly mentions that Thailand has one of the highest adoption rates of DeFi (Decentralised Finance) right after the US and Vietnam in ranking.
Despite having a positive stance about crypto, the Thailand government are introducing ways to control and oversee crypto.
As of early 2022, the country had a total of eight crypto currency exchanges that were licensed.
Huobi Remains In Touch With Customers Regarding The Crypto Withdrawals
Huobi mentions that it is constantly trying to be in touch with its customers in order to help them navigate the situation.
The crypto exchange is providing all kinds of guidance for customers to be able to withdraw their digital assets seamlessly. Despite such attempts, it acknowledges that some customers still remain out of reach.
The platform is providing details of customers who are unreachable so that they withdraw their funds quickly before Huobi shuts operation in Thailand permanently.
In its official statement, Huobi mentions,
After the closure of the Huobi Thailand platform, Huobi Thailand will no longer have any connections nor legal binding with Huobi Group and its affiliates. Huobi Group and its affiliates are not and will not be responsible for any issues regarding to Huobi Thailand
Huobi Thailand started its operations in the country just a little over two years. This was after the crypto exchange platform strived to achieve global expansion right after it moved out of China.
Recently, China has been tightening its policies around crypto trading. Huobi was originally found in China.
Related Reading | Chinese Crypto Exchange Huobi To Expand In Latin America, Buys Bitex Crypto Exchange
So What Was The Issue With Huobi’s License?
Earlier last year, the platform was noticed by the local watchdog because of its management structure.
After the review that happened in February-March last year, Thailand’s Securities and Exchange Commission (SEC) stepped in to notify Huobi about the existing flaws in the platform itself along with other structural and management issues.
This year, in April, SEC intimated Huobi to shut its services for the time being and work on the regulatory issues pointed out by SEC.
The crypto platform had also received extensions after the notification. After the exchange failed to address the flagged issues, in September, SEC decided to revoke the license of the exchange causing it to permanently shut its operation in Thailand.
Huobi Thailand stated,
We are sorry our journey has come to the end, and we sincerely thank you for your long support
It is also important to bear in mind that those who still remain unreachable and are liable to lose their funds won’t get any assistance from Huobi after it shuts operations permanently in Thailand in the month of July.
Related article | Thailand Gives Tax Break For Digital Assets