Huobi’s unit in Thailand will shut down operations on July 1, after the Thai Securities and Exchange Commission (SEC) revoked its operating license.
The Thai SEC revoked Huobi’s license in May after it failed to comply with local regulations. The permanent closure orders come nearly eight months after regulators suspended the exchange’s services in September.
The exchange stated that it has tried to work out the regulatory issues, but would have to close operations due to the SEC orders.
“Due to the SEC decision, Huobi Thailand is no longer an authorized digital asset exchange in Thailand. We will close the platform permanently on July 1, 2022.”
The official statement from the Thai SEC revealed that the crypto exchange was first warned about the improper measures of its system in March last year. The crypto exchange has also received multiple extensions to fix its trading system, the client asset retention system. and information technology systems, but despite multiple extensions and guarantees, the crypto exchange failed to comply with SEC regulations.
Therefore, after a thorough review of the series of violations and the failure to resolve the issues, the regulatory body decided to revoke the digital asset trading license permanently on May 17, 2022.
“The Finance Minister, on the recommendation of the SEC, found that Huobi still violated and did not comply with the conditions of the SEC order. Huobi’s digital asset trading license in the category of a digital token trading hub is revoked, effective May 17, 2022.”
Related: Thailand’s SEC Bans Crypto Payments, Seeks Disclosure of Exchanges’ System Flaws
The crypto exchange has posted a notice on the official website of its Thai platform, reminding customers to withdraw their funds and also left a refund address to contact in case users do not withdraw their funds before the permanent shutdown.
Huobi did not respond to requests for comment from Cointelegraph at press time.
Thailand is considered one of the progressive crypto nations in Asia with tax breaks for traders and a regulated environment for cryptocurrency exchanges. However, many cryptocurrency exchanges in the past have faced issues with regulatory guidelines, including Binance.
Earlier in March this year, the Thai SEC banned cryptocurrencies as a means of payment and also announced that cryptocurrency exchanges must disclose flaws in their systems to ensure user protection.