Huobi Thailand will permanently shut down its exchange on July 1, according to an announcement posted on its website.
This marks the exchange’s short-lived expansion into the Southeast Asian country where crypto adoption is thriving. According to blockchain analytics firm Chainalysis, Thailand has one of the world’s highest adoption rates of DeFi, or decentralized financial services, nestled alongside the United States and Vietnam.
Nonetheless, the Thai government has tightened the use of crypto-based payments amid falling crypto value. The country had eight licensed crypto exchanges as of February, with Bangkok-based Bitkub leading the pack.
Despite its name, Huobi Thailand has tenuous ties to Huobi, one of the largest crypto exchanges in the world. Huobi Thailand was created using technology provided by Huobi Cloud, Huobi’s blockchain solution provider that helps third parties without IT capabilities set up OTC exchanges and other blockchain-related services. cryptography.
Huobi Thailand was launched just over two years ago as Huobi itself doubled down on its global expansion after emerging from China, where it was originally founded. China has launched a series of crackdowns on crypto trading in recent years, prompting related businesses to move overseas and seek foreign customers.
“As part of Huobi Group’s global expansion strategy, Huobi Cloud is looking for suitable local partners to collaborate with,” the parent company said when Huobi Thailand was awarded the license to run a digital asset exchange in the country. .
Huobi Thailand has obtained a digital asset trading license issued by the Thai Ministry of Finance which allows its users to buy Bitcoin, Ethereum, Huobi Token and stablecoin USDT with Thai Baht.
In September, Thailand’s Securities and Exchange Commission revoked Huobi Thailand’s business license after finding “shortcomings and deficiencies in Huobi’s management structure and working systems, preventing the company from operating its business. in accordance with the regulations in force”.
Huobi Thailand said it was in the process of returning users’ assets, but would not be responsible for any issues with the platform after it was shut down in July.
“We are sorry that our journey has come to an end and we sincerely thank you for your long support,” Huobi Thailand wrote.
Updated story with clarification on the relationship between Huobi and Huobi Thailand.