Cryptocurrency exchange Huobi Thailand announced on its website that it will close permanently on July 1 after losing its license to operate in Thailand.
The Securities and Exchange Commission (SEC) said last week that it revoked the company’s cryptocurrency trading license last month after it failed to license systems and personnel in accordance with rules and regulations.
The SEC had previously suspended the company’s operations since September 2021 for similar issues.
In a statement posted on Huobi’s website, the company explained that it will permanently close its exchange on July 1 and is working to contact its customers so they can collect their assets before it’s too late.
The Ministry of Finance had previously granted Huobi Thailand a digital asset trading license that allowed users to buy Bitcoin, Ethereum, Huobi Token and USDT stablecoins with Thai baht.
Thailand has one of the highest adoption rates for cryptocurrencies and decentralized financial services (DeFi) in the world, along with the United States and Vietnam, although the Thai government has recently stepped up regulation of crypto payments.
Thailand currently has eight licensed cryptocurrency exchanges with the largest Bangkok-based Bitkub.
Huobi Thailand was created using technology provided by Huobi’s blockchain solution provider, Huobi Cloud, which helps third parties build exchanges and other cryptocurrency-related services.
Huobi’s fleeting adventure in Thailand
Huobi Thailand was launched just over two years ago, as Huobi itself accelerated its global expansion after leaving China, where it originated. In recent years, China has launched a series of crackdowns on cryptocurrency trading, prompting related companies to move overseas and attract international clients.
Huobi’s venture in Thailand was relatively short-lived – the company launched its platform in the country in late February 2020, according to the parent company’s website. Its services had been suspended since early September last year following a Thai SEC ruling.
This is not the first time that Huobi has had to withdraw from a country. Parent company Huobi Technology Holdings Ltd. has been required to disable trading for clients in the United States due to laws and regulations related to cryptocurrency assets, the company said in a November 2019 post.
Huobi was also forced to leave China to escape the cryptocurrency industry crackdown last year, costing Huobi about 30% of his earnings, according to Huobi co-founder Du Jun.