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After the closure of the platform, Huobi Thailand will no longer have any connections or legal bindings with Huobi Group and its affiliates.
Huobi Thailand has announced it will cease all operations on its platform from July 1. According to a statement by the Thailand unit of Huobi Global, the Thailand SEC revoked the company’s license in September 2021.
This is not the first time Huobi Global will be shutting down operations in a country. In 2018, it ceased its operations in the U.S barely one year after setting up its exchange, promising to return in a more integrated and impactful fashion.
Later in 2020, the firm moved to Thailand after losing its license to a general Chinese regulatory crackdown. Following that move, the firm lost 30% of its revenue and relocated its Asian headquarters to Singapore. In Thailand, the firm obtained a digital asset trading license from the Ministry of Finance. The license allowed investors to transact Bitcoin, Ethereum, USDT, and the Huobi token. However, barely two years after, the Thailand SEC revoked the license.
What Went Wrong with Huobi Thailand?
The SEC noted it found lapses in Huobi’s managerial structure and work systems. This meant the company would ‘fail to operate its business in compliance with the governing regulation’. Consequently, the SEC revoked the firm’s operational license, warranting a shutdown of operations. The firm is also required to return all assets to customers.
Interestingly, Thailand may be considered a crypto-forward nation. According to data from TechCrunch, Thailand has one of the highest DeFi adoption rates. Nonetheless, the country has tightened its regulatory nose to protect investors.
With Huobi Thailand due to shut down operations in July, the company reveals that several unclaimed assets remained on the platform. To help customers, Huobi Thailand has set up a dedicated email and Telegram page to enable withdrawals after the platform closes.
After the closure of the Huobi Thailand platform, Huobi Thailand will no longer have any connections or legal bindings with Huobi Group and its affiliates. The firm apologized for the short-lived venture in the country. They then went ahead to thank investors. “We sincerely thank you for your long support,” said they.