While the entire crypto market deals with the onset of the gruesome bears, Huobi has decided to permanently pull the plug on one of its branches. More like it was forced to do so. Earlier today it came to light that the prominent crypto exchange was bidding adieu to its Thailand wing.
Every crypto exchange in the market has been eyeing expansion for the longest time. However, attaining regulatory approval has not been an easy task. Huobi entered the shores of Thailand back in 2020 and is already set to say goodbye. In a recent notice on the exchange’s website, it announced that it would close its business in the region as it no longer operates as a licensed entity.
The notice read,
“Due to the SEC decision, Huobi Thailand is no longer an authorized digital asset exchange in Thailand. We will be shutting down the platform permanently on July 1, 2022.”
The platform would reportedly shut its doors on July 1 and would not be legally associated with the Huobi Group as well as its affiliates.
What made Huobi exit the Thai market?
Back in September 2021, the Securities and Exchange Commission of Thailand urged the Ministry of Finance to revoke Huobi’s crypto license. This was due to the exchange’s incapability in mending the inconsistencies that the regulator found in trading, IT systems, as well as customer asset retention. On account of the above concerns, Huobi had to suspend trading services in 2021.
The regulator had given a total of three months from September to the exchange to return its users’ funds. As a result, the exchange in its latest notice wrote,
“Since September 2021, we have been trying to contact all clients to withdraw their assets.”
Additionally, as this remains a closed-door, Huobi Global laid focus on the DeFi arena by pouring $1 billion into it. Last week the firm, deployed Ivy Blocks which would act as an investment arm. With this, the exchange intends to aid projects in the DeFi and Web-3 space.
Huobi seemed to be living by the ‘Onto better things,’ motto.