Huobi Announces Closure of Thai Unit After Regulator Revokes License  Huobi Announces Closure of Thai Unit After Regulator Revokes License 

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Dig­i­tal assets exchange Huo­bi will close down its Thai­land oper­a­tions per­ma­nent­ly with effect from July 1, 2022. A unit of the Sey­chelles-based com­pa­ny, Huo­bi Thai­land, ran into trou­ble with the local watch­dog in Feb­ru­ary-March 2021 when it was red-flagged for vio­la­tion of regulations. 

Huobi Shuts Down Thai Ops

“Due to the deci­sion of the board of SEC, Huo­bi Thai­land is no longer a licensed exchange. We will close down the plat­form per­ma­nent­ly on July 1, 2022,” the com­pa­ny said in an announce­ment on its website.

Huo­bi acknowl­edged that despite its efforts to con­tact cus­tomers and request them to with­draw their assets, there are still some out-of-reach con­sumers. It pro­vid­ed con­tact details for such clients to with­draw their assets after the plat­form clos­es down permanently.

“After the clo­sure of the Huo­bi Thai­land plat­form, Huo­bi Thai­land will no longer have any con­nec­tions nor legal bind­ing with Huo­bi Group and its affil­i­ates. Huo­bi Group and its affil­i­ates are not and will not be respon­si­ble for any issues regard­ing to Huo­bi Thai­land,” the state­ment added. 

Trouble With the Regulator

After a review in Feb­ru­ary-March last year, Thailand’s Secu­ri­ties and Exchange Com­mis­sion (SEC) said it had found flaws in the cryp­to exchange’s man­age­ment struc­ture and platform. 

On April 1, 2022, the watch­dog asked Huo­bi to tem­porar­i­ly halt its ser­vices, return the assets to its cus­tomers, and fix the reg­u­la­to­ry flaws in three months. After a few exten­sions and Huobi’s fail­ure to rec­ti­fy the prob­lems flagged by the SEC, the reg­u­la­tor in Sep­tem­ber last year rec­om­mend­ed to the Finance Min­istry to revoke the exchange’s license. 

No Plans to Adopt Bitcoin

In March, Malaysia’s Deputy Finance Min­is­ter Mohd Sha­har Abdul­lah denied spec­u­la­tions that the South East Asian nation was plan­ning to adopt bit­coin as a legal tender. 

“Cryp­tocur­ren­cies like Bit­coin are not suit­able for use as a pay­ment instru­ment due to var­i­ous lim­i­ta­tions,” he clar­i­fied, with­out giv­ing details about the “lim­i­ta­tions.” 

Huobi Fund for Web3, DeFi

Huo­bi, how­ev­er, is bull­ish on Web3 and DeFi as it cre­at­ed a new invest­ment arm Ivy Blocks with $1 bil­lion in cryp­tocur­ren­cies to fund projects in these fields. 

“Many promis­ing projects tend to encounter liq­uid­i­ty con­straints and a lack of go-to-mar­ket sup­port, which present sig­nif­i­cant bar­ri­ers to growth. Our focus on pro­vid­ing such projects with liq­uid­i­ty invest­ments and incu­ba­tion ser­vices will no doubt con­tribute towards cre­at­ing a bet­ter, more inclu­sive DeFi and Web 3 blockchain ecosys­tem,” com­ment­ed Huo­bi CFO Lily Zhang.

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