In early January, Thailand-based exchange, BitKub, informed the public about plans to restrict new customer’s registration, following the unexpected technical glitch the platform faced during the iconic Bitcoin surge. The platform assured that the restriction period would adequately fix problems within the network that caused the January glitch.
Many platform accounts could not explore the surge to secure some profits, necessitating Thai authorities to order the well-known platform to fix its problems. The exchange is presently one of the largest within the nation, showing that many natives missed the $40,000 mark due to the unforeseen circumstance. Many other crypto-related platforms faced similar challenges, with Coinbase’s UK clients missing a significant part of the surge. Most exchanges attributed it to the massive traffic the platforms saw.
Thai regulator orders halt in new users
The authority responsible for exchanges, the Thai Securities and Exchanges Commission, instructed the exchange to stop registering new users till it can accommodate the rising demands.
Many countries share statistics regarding the higher numbers looking into investing in digital assets, especially because it boomed during the first weeks of January. Bitcoin’s price hit $40,000, which helped traders record high profits within a short period. Another factor linked to higher surges is institutional traders, who are now opened to exploring the crypto sector.
A local news source called Bangkok Post was one of the first to share the news. The post explained that the restriction covers certain areas such as early accounts stages like account registration, pending applications, and ID verification stages. Interestingly, BitKub was not the only one suspended by the regulator.
Other exchanges that saw similar issues must improve their technical infrastructure to accommodate a larger crowd before accepting new applications. The glitch blocked customers’ accounts in early 2021, preventing them from making significant moves regarding trades.
Bitcoin’s success caused platform failure
Thai Securities and Exchange had earlier ordered trading platforms to solve their issues within five days on January 20. The recurring account restrictions led to the new order mandating exchanges involved in the problems. When BitKub’s platform started seeing outages for several hours, this made the regulators foresee the platform’s lack of capacity to support new members.
While many factors could have caused higher traffic, sources claim that the biggest influencers remain the price surges the digital asset caused by heavier trading volumes and aggressive bull runs. Traders were dissatisfied with the ongoing restrictions that made them lose potential profits.
Some customers raised some issues and solutions to prevent an incident like that from recurring. The clients opined that the firm has to work on the system to prevent constant service interruptions while solving other problems. The users want the ease of withdrawal when the system fails at critical points, like in January.
Asides from the new suspension, the regulator requested a new verification process to help keep track of the large crypto traders in the space. Following the new requirements, BitKub is currently not receiving applications to provide a suitable environment for the growing demand.
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