One of the world’s largest digital currency exchanges could see its license revoked in Thailand after failing to meet regulatory requirements. Thailand’s securities regulator recently announced that it has suspended Huobi exchange services in the country and recommended that the Ministry of Finance suspend its license for “irreparable” regulatory violations.

Huobi operates in the Southeast Asian country through its local subsidiary, which obtained the operating license in July 2019. And while the global company promptly complied with regulators in several jurisdictions, it The same was not true for the Thai subsidiary.

According to a statement from the Thai Securities and Exchange Commission, Huobi was first made aware of his non-compliance during an investigation opened earlier this year. The exchange acknowledged its violation and requested an extension to meet its regulatory obligations. The SEC granted the extension until the end of August.

However, five months and 12 days since he was first notified of his breach, Huobi has not been able to meet his obligations. According to the watchdog, Huobi’s client asset retention systems, information technology systems and trading systems are “beyond repair.”

“The SEC has extended the correction period several times as requested by Huobi, including the total modification period of 5 months and 12 days. Huobi cannot fix it.

The SEC gave the exchange three months, starting September 2, to return all assets to its Thai users. He also recommended that the Ministry of Finance revoke Huobi’s business license. In addition, he ordered Huobi to provide a security deposit to his clients if he is unable to return all assets in three months.

Thailand’s SEC has been pretty strict with digital currency companies as it seeks to protect investors. A few months ago, as many regulators started lashing out at non-compliant Binance, the Thai SEC went further and filed a criminal complaint against the exchange “for committing an offense under the decree of ’emergency on digital asset companies’.

Huobi, for his part, recently broke the law in a few jurisdictions. Last month, Spain’s securities regulator warned that there were 12 companies offering digital currency services in the country without getting the license, including Huobi.

Watch: CoinGeek Zurich Panel, Blockchain Law & Policy

New to Bitcoin? Discover CoinGeek Bitcoin for beginners section, the ultimate resource guide to learning more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.