Farewell Thailand! – The Thai branch of Huobi closes its doors. The crypto platform obey the orders of the SECOND who had it in sight for more than a year.
Huobi Thailand against the SEC: end of the game for the exchange
Huobi Thailand announced the permanent closure of the platform for 1uh July 2022. The company is therefore ceasing its activities in the country, a few weeks after the revocation of its license on May 17, 2022.
Prior to such license withdrawal and closure, the SECOND issued a first Warning against the crypto exchange, in March 2021. The regulator motivated this alert by referring to the prevented system of Huobi Thailand.
Subsequently, the platform had strengthened time limit to comply with SEC requirements. For this, it needed to improve its system of trading and custody of client assets as well as its IT systems.
However, regulators ended up suspending Huobi Thailand’s services in September 2021. And despite its efforts since then, the company will not have not completed to respond to expectations of the SEC. It is forced to close its doors, 8 months after this suspension of its activities last year.
In this context, the company recalled, on its platform intended for clients thai withdraw their cryptocurrencies.
In addition, affected users may communicate a refund address that the company can contact. This address will only be used if users fail to withdraw their assets before the permanent closure.
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Cryptocurrencies in Thailand: positive, but many restrictions
The business environment for crypto companies in Thailand is characterized by a certain ambivalence.
On the one hand, the smoking authorities favorable measures to the development of the crypto ecosystem in the country.
The Ministry of Finance had, for example, exemptedin March 2022, traders in the VAT 7% on authorized exchanges. This tax easing came weeks after plans to introduce a 15% tax on cryptocurrency gains were dropped.
But on the other hand, alongside these positive provisions for the cryptosphere, regulators show the fangs too.
Indeed, the Thai SEC issued, at the beginning of 2022, a prohibition of using cryptocurrencies as means of payment. It also imposes on cryptocurrency exchanges a disclosure obligation failures in their system.
And the regulator does not hesitate to tackle big fish. Besides Huobi, Binance had also faced a criminal complaint from the agency. The SEC had criticized him for operating an unlicensed digital asset business.
Houbi must therefore make a cross over thailand. Does the company intend to return to it via other expansion strategies? Huobi Global had, after all, chosen to conquer Latin America, by buying another cryptocurrency exchange there.
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