Bye bye Thailand! – The Thai branch of Huobi closes its doors. The cryptographic platform obey the orders of the DRY who had had it in sight for more than a year.
Huobi Thailand vs SEC: final for the exchange
Huobi Thailand announced the definitive closure of the platform for 1uh July 2022. The company then ceases its activities in the country, a few weeks after the license was revoked on May 17, 2022.
Prior to such withdrawal and termination of the license, the DRY issued a first Warning against the cryptocurrency exchange, in March 2021. The regulator justified this report by referring to the system deemed inadequate by Huobi Thailand.
Subsequently, the platform benefited from it further delays to meet SEC requirements. To this end, it needed to improve its trading and custody system for clients’ 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 answer expectations of the SEC. She is forced to close its doors, 8 months after the suspension of its activities last year.
In this context, the company recalled, on its intended platform customers Thai withdraw your cryptocurrency.
In addition, interested users can communicate to refund address that the company can contact. This address will only be used if users do not collect their assets before final closure.
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Cryptocurrencies in Thailand: positive, but many restrictions
The economic environment for crypto companies in Thailand is characterized by a certain ambivalence.
On the one hand, the authorities are taking favorable measures to the development of the crypto ecosystem in the country.
The Ministry of Finance had, for example, exemptedin March 2022, the traders of the VAT 7% on authorized exchanges. This fiscal easing came weeks after plans to introduce a 15% tax on cryptocurrency earnings were dropped.
But on the other hand, in addition to these positive provisions for the cryptosphere, the regulators also shows fangs.
The Thai SEC in fact issued, at the beginning of 2022, a prohibition to use cryptocurrencies such as payment methods. It also forces cryptocurrency exchanges to disclosure obligation failures in their system.
And the regulator does not hesitate to deal with big fish. In addition to Huobi, Binance he had also faced a criminal complaint from the agency. The SEC criticized him for running an unlicensed digital asset business.
Huobi must therefore do cross Thailand. Does the company intend to return through other expansion strategies? After all, Huobi Global had chosen to conquer Latin America, buying another cryptocurrency exchange there.
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