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Local authorities in Thailand have banned Huobi’s operations after it allegedly failed to comply with local legislation.
Thailand’s Securities and Exchange Commission has temporarily banned the services of crypto exchange Houbi’s local branch and recommended that its operating licence be revoked by the Ministry of Finance. Huobi has been given three months to refund all assets to its customers following the ban.
Huobi, which is branded as DSDack in Thailand, received the suspension order after failing to comply with local regulations related to its operations and management structure.
According to the Thai SEC, Huobi was first informed about a breach of compliance during an investigation that started in February 2021. After its reported failure to meet the regulatory requirements set by the authorities, Huobi had been given an extension until the end of August 2021 based on the exchange’s request.
Despite a total extension of five months and 12 days, the SEC declared Huobi’s trading systems, customer asset retention systems, and information technology systems “irreparable” and gave the exchange three months from Thursday, September 2, to return all assets to its Thai-based customers and clients.
Furthermore, the SEC has requested that Huobi offer a security deposit for clients if it fails to refund all assets within the time frame specified.
While Thailand has permitted citizens to trade in cryptocurrency, the Thai Securities and Exchange Commission (SEC) has been giving regular guidance to crypto exchanges in order to reduce the perceived dangers involved with trading cryptocurrency.
The SEC adopted a rule in June 2021 prohibiting crypto exchanges from hosting meme-based tokens, fan-based tokens, nonfungible tokens, and exchange-issued tokens. The SEC also mandated that all coins listed on the exchange comply to the capabilities outlined in their separate white papers.
The Thai Securities and Exchange Commission has also recommended a new framework that forbids crypto businesses from using investors’ assets for any business or personal gain.