Thailand’s Securities and Exchange Commission (SEC) may revoke the license of digital exchange Huobi (Thailand) Co. The regulator stated that it has no option other than to revoke the license after the exchange failed to provide a solution to its system flaws after more than 5 months.
The watchdog added that Huobi will continue to suspend its services. It also stated that it should return clients’ assets within three months.
Active Flaws Found In Huobi’s Platform
The regulator reviewed the exchange’s platform and management structure in February and March. According to the SEC, there are active flaws in the company’s systems which has not been fixed, after asking the exchange to correct the flaws.
A month after the warning, the SEC asked Huobi to temporarily suspend its services until the flaws are fixed. But five months after the demand, the exchange seemed not to have fixed the errors yet.
The commission said even after it approved its requests for extension several times, the exchange has been unable to fix the flaws. As a result, it has decided to revoke its license to protect investors on the platform.
Huobi (Thailand), an affiliate of the Huobi global crypto exchange, gained an operational license in Thailand in July 2019, making it one of the few digital exchange firms to operate in the country.
More Crypto Exchanges Under Fire
The SEC has intensified its efforts to provide a stable environment in the digital exchange market. The latest development is coming at a time when regulators in other jurisdictions are issuing warnings against another crypto exchange Binance.
Regulators of the Spanish securities markets have also warned 10 digital asset exchange firms, including Bybit and Huobi, two popular crypto exchanges in the world. The regulator warned them against operating in the country without proper licenses.
However, in Thailand’s case, the SEC went further to revoke the license and lodged a criminal complaint against the crypto exchange.