The Thai Securities and Exchange Commission is currently considering revoking the stock exchange license of the crypto exchange Huobi. The reason for this would be insufficient business processes and management structures. In addition, the exchange has repeatedly failed to comply with the requirements. Now the withdrawal of the license is threatened.
Thai SEC continues to crack down
Thailand’s Securities and Exchange Commission (SEC) had already proposed to the finance minister last week to revoke the operating license of crypto exchange Huobi. The statement said that the minister should consider doing so as the exchange had failed to comply with several requirements. Meanwhile, the SEC is planning to halt all services at Huobi. This also means that the crypto exchange will have to return all assets to customers – within three months of the SEC order being announced. This license revocation comes after an investigation into Huobi that took place earlier this year.
Inadequate business operations and management structures at Huobi
The crypto exchange has been accused of inadequate business operations and management structures, among other things. This was found between February 2021 and March 2021. In the process, the regulator had raised announcements and rules and had given Huobi until April 1, 2021 to make relevant changes.
This was not complied with by the exchange, which therefore asked for an extension of time. This was then extended to August 31, 2021. Huobi missed that deadline as well. Now the SEC is demanding the final revocation and wants to revoke Huobi’s stock exchange license. However, this is only about the fact that Huobi did not meet any of the deadlines. Now, the crypto exchange has three months to return all of its assets to customers.
Crypto purge moves to the next round
Thailand is now continuing the crypto purge when it revokes Huobi’s exchange license. In the process, the SEC had already filed a criminal complaint against Binance earlier this summer. Nothing out of the ordinary for Binance, as this exchange is after all currently having problems with regulators everywhere. The complaint against Binance referred to the non-existent license in Thailand, which is actually available in only a few countries.
Due to the ever-increasing problems, Binance has stopped operations in several countries to ensure compliance. But it the Thai SEC has not only Binance and Huobi in its sights. Schon in the spring, the regulator enforced that customers had to undergo an identity procedure when signing up for crypto exchanges. According to the SEC, this is a measure to combat money laundering. However, the background was also that most Thai users preferred to be anonymous on the exchanges, making it much harder to check.
Slowly but surely, regulations are moving forward and more and more countries are imposing measures and demanding further regulations for the crypto market.
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