Huobi Thailand to shut down in July amid tightening crypto regulations

Huobi Thailand to shut down in July amid tightening crypto regulations

Crypto exchange platform Huobi Thailand is reportedly shutting down its operations permanently in the country. The development comes after the government is looking to strictly regulate the use of crypto-based payments amid an unstable crypto market.

Thailand has managed to position itself next to the U.S. and Vietnam for having one of the highest adoption rates of decentralized financial services (DeFi) globally. In February, the country had eight licensed crypto exchange platforms, with the Thai-based Bitkub platform accounting for the majority market share.

Huobi Thailand was created with the technology offered by its parent company Huobi’s blockchain solution provider, Huobi Cloud. The firm essentially helps third parties set up over-the-counter exchanges, as well as other crypto-related services, without IT capabilities.

Following its exit from China, where the exchange was originally founded, Huobi launched its Thai platform back in 2020 as part of its global expansion plans. At the time when Huobi Thailand received a digital asset trading license from Thailand’s Ministry of Finance, Huobi Group stated that Huobi Cloud is looking to collaborate with suitable local partners

With the license, users could buy Ethereum, Bitcoin, stablecoin USDT, and Huobi Token with local currency.

Last year in September, the Securities and Exchange Commission of Thailand had withdrawn the exchange platform’s operating license on founding insufficiency and deficiencies in Huobi’s work systems and management structure.

The SEC has revealed that the firm failed in running its business in agreement with the governing regulations. However, the Thai firm said that it is in the process of returning the assets of its customers, adding that there are still some ‘out of reach’ customers with whom they are not able to make contact.

After the exchange platform will be closed, customers will not be able to reclaim any of their assets that were on the exchange and will not be affiliated with Huobi Group legally or otherwise.

Source credit: https://techcrunch.com/2022/06/16/huobi-shutdown-thailand/