Huobi, a digital currency exchange located in Seychelles, is to permanently down its Thailand branch as of July 1. The exchange has advised customers to remove their digital assets from the site before the cutoff.

The Thailand Securities and Exchange Commission (SEC) decision to terminate the exchange’s license in September caused the suspension. The public was informed of this via a message on the exchange’s website, which said that Huobi Thailand is no longer a recognized digital asset exchange in Thailand as a result of the SEC decision. On July 1, 2022, they will permanently shut down the platform.

The exchange has been contacting consumers to request money withdrawals since September. After the deadline, customers can still contact the Thailand-based subsidiary to request withdrawals. However, the letter notes that following the permanent shutdown, the subsidiary will no longer be linked with or legally tied to its parent business Huobi Global.

Huobi only spent a brief amount of time in Thailand. It received its initial license in 2019 and started running in 2020. The Thai securities regulator reported “irreparable” regulatory violations in the exchange’s activities after an earlier 2021 inquiry.

The Thai Ministry of Finance also revoked the exchange’s license this week due to the findings at the time. The Ministry of Finance justified its move by pointing out that Huobi had fallen short of the SEC’s requirements for consumer safety.

Regulation issues in Huobi’s past

The exchange has experienced regulatory issues before, not only in Thailand. Due to the government crackdown on all companies dealing in digital assets, it has been shut down in the U.S. since 2019 and has to leave China in 2021.

Du Jun, a co-founder of Huobi Global, claimed in an interview with CNBC that the exchange lost roughly 30% of its income last year due to shuttering its operations in mainland China.

He also disclosed Huobi’s plans to reappear on the American market, but this time as an asset manager.

Huobi has continued to rank among the largest digital currency exchanges worldwide despite the issues. The exchange said last week that it will now trade BSV in Japan.

It hasn’t been the only exchange to experience regulatory issues, either.

The largest exchange in the world by trading volume, Binance, had several regulatory challenges during the whole of 2021. As its U.S. subsidiary is presently dealing with a class-action lawsuit concerning the Terra collapse, Binance’s problems have persisted this year.

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