By Shelly Melancon (Switzerland)
An official statement by Huobi states that the popular crypto exchange would no longer be operating in Thailand.
Why Huobi is leaving Thailand
The main reason Huobi is leaving Thailand might not be unconnected with the issues it had with Thailand’s financial regulatory authorities last year. The regulator alleged that Huobi violated some of its regulations. However, Huobi claimed otherwise. Hence, it is not surprising that the regulators have chosen to revoke Huobi’s license.
A recent Chainalysis data revealed that Thailand ranks third among counties with the highest DeFi adoption rates globally. US and Vietnam occupy the first and second rankings respectively.
While Thailand authorities are pro-crypto, they are taking measures to ensure that players in the industry aren’t using it for the wrong purpose. As at the start of this year, there eight licensed crypto exchanges in Thailand.
Huobi’s Thailand Users Can Still Make Withdrawals
The announcement stated that Huobi would keep assisting its Thailand users wherever they need assistance. Part of the assistance involves the ability of these users to withdraw their digital assets before july 1, 2022.
However, the exchange admits that it may not be able to help anyone that is unreachable. Huobi’s official statement regarding this matter further reads, “once we shut down this portal, Huobi Thailand would have no affiliation with Huobi global whether legal or otherwise. Hence, Huobi global wont take any responsibility for issues related to Huobi Thailand.”
Also read:Huobi’s Thailand operations lasted just over two years. Thailand was the first destination of Huobi global following its exit from China. China’s clampdown on crypto related activities pushed all crypto players out of the country, including Huobi global.
Huobi’s Issues With Thailand’s Financial Regulators
Between february and march last year, Thailand’s securities and exchange commission sent a warning notice to Huobi over its management structure. The regulator also cited other flaws which the platform needed to address.
Thailand SEC also issued an additional warning notice to Huobi last September over the same issue. However, the regulator claimed that Huobi did not address those flaws. Hence, the regulator sent a notice to the exchange that it has withdrawn its operational license temporarily.
Part of the announcement states that any user that the exchange can’t reach will lose any funds they have on the platform after July 1. Thailand’s suspension of Huobi’s license indicates that authorities are gradually taking action in regulating the crypto space.
Huobi Keeps Moving
After the announcement of the suspension of its operational license in Thailand, Huobi group announced that it has an operational license in another region. Huobi has obtained a DIFC innovation license in Dubai. The new license allows Huobi to be a VASP in Dubai.
Huobi also confirmed its license registration with New Zealand’s regulatory authorities. Like the Dubai license, Huobi can also provide the full range of its services in New Zealand.
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