SEC bars Bitkub from registering new clients
Crypto exchange must satisfy securities regulator that it can handle high trading volume
published : 5 Feb 2021 at 21:51
writer: Nuntawun Polkuamdee
Thai cryptocurrency exchange Bitkub Online announced the suspension of new client registration on Friday following an order from the Securities and Exchange Commission (SEC) asking the company to halt accepting new clients until the company proves its platform is able to effectively accommodate trading activities of its existing customers.
Last month Bitkub temporarily shut down its trading platform to fix issues with the system, following the SEC’s order after the platform crashed three times due to spikes in activity. Investors and speculators have been piling into cryptocurrencies in recent weeks, leading to record-setting prices above $40,000 (1.2 million baht) for Bitcoin.
However, even after system maintenance, the SEC still found Bitkub’s trading system insufficient to accommodate the current trading volume, according to the SEC statement.
To protect investors, the SEC ordered the company to immediately suspend new client registration, including halting pending confirmations and identity verification processes for new customers, until the company is able to prove to the SEC that its system can accommodate Bitkub’s current business size and trading volume.
According to the statement, Bitkub needs to address five issues: providing a trading system that can accommodate the volume of clients and transactions expected to occur in the future according to its business plan; providing a system that allows customers to withdraw their assets immediately in case of a system failure; providing a verification system that can accurately prove the identity of customers or beneficiaries; providing a system and customer services that allow customers to file complaints; providing a business continuity plan that maps out the company’s protocols in emergency cases.
After the SEC issued its statement, Bitkub followed with a statement acknowledging the SEC’s resolution and announcing it is complying with the orders, aiming to fix the issues as soon as possible.