The Securities and Exchange Commission will ask the Finance Ministry to revoke the licence of Huobi (Thailand) Co, a digital asset exchange operator, after it failed to fix system flaws after more than five months.
As a result, the company must continue to suspend services and return assets to all clients within three months, according to the regulator's announcement on Saturday.
During a review in February and March this year, the regulator said it had found flaws in Huobi's management structure and platform, which violated regulations.
The commission at its meeting on March 19 resolved to ask Huobi to correct the flaws by the authority granted it under Section 35 of the Digital Asset Act.
However, the firm was unable to solve the problem by the deadline.
During a meeting on April 1, the SEC decided to ask Huobi to temporarily suspend its services and rectify the flaws within a given date. The commission also asked the firm to return assets to its clients.
But Huobi kept asking for extensions to the deadline. The SEC approved its requests but the firm was still unable to solve the problems by Tuesday's deadline.
On Thursday, the SEC found the company still failed to comply with its order after five months and 12 days, prompting it to seek the revocation of the company's licence to operate in Thailand.