The Securities and Exchange Commission of Thailand (SEC) issued an order against a local cryptocurrency exchange to temporarily suspend its operations. Bitkub has been in the headlines since the beginning of the year due to several breakdowns in their systems.
Crypto Exchange has suffered Three Massive Breaks Since the Beginning of 2021
According to Bangkok Post, the financial watchdog gave the exchange five days, starting January 20, to resolve all technical issues. Their desktop trading platform has suffered three cuts since January 2.
The other incidents occurred on Jan. 3 and 16, the local media outlet said. One of the reasons behind the increasing number of breaches is the large rise in crypto prices, specifically in bitcoin (BTC). As a result, Bitkub could not handle trading volumes, noted a source quoted by Bangkok Post.
However, after being inactive for 16 hours since the SEC’s temporary closure, Bitkub reopen its mobile applications platform for trading purposes. As of press time, Bitkub’s desktop platform continues to halt its operations.
After receiving “heavy complaints” from consumers about the constant interruption in services, the SEC decided to ask for the crypto exchange to close.
The SEC board met on Jan. 18 to discuss passing a resolution requiring Bitkub to submit the issue correction and amendment plan.
Bitkub Crypto Market Share in Thailand
Bangkok Post notes that Bitkub is considered the most popular crypto exchange in Thailand. In fact, they have a 97% market share based on the number of accounts and daily trading.
The company reported on Jan. 7 that it has about 800,000 active trading accounts. However, an anonymous source told a media outlet that there are only 300,000 – 400,000 accounts. By quoting the person familiar with the matter, Bangkok Post explained:
The discrepancy in figures suggests that there are still plenty of new accounts that have not yet been checked through your customer identification (KYC) process and therefore cannot be used for trading on the platform.
What do you think of the SEC’s order on the Thai crypto exchange? Let us know in the comments section below.
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