Thailand's Securities and Exchange Committee has temporarily suspended the services of the local branch of crypto exchange Houbi and recommended revoking its operating license with the Ministry building of Finance. With the suspension in identify, Huobi has been given iii months to return all assets to its clients.

Huobi, which is branded as DSDack in Thailand, received the intermission lodge after declining to comply with local regulations related to its operations and direction construction.

According to the Thai SEC, Huobi was first informed virtually a breach of compliance during an investigation that started in February 2022. After its reported failure to meet the regulatory requirements gear up by the authorities, Huobi had been given an extension until the end of August 2022 based on the exchange's request.

Despite a total extension of five months and 12 days, the SEC ruled Huobi's trading systems, customer asset memory systems and it systems as "irreparable" and has given the exchange iii months from Thursday, Sept. 2, to render all assets to its Thai-based customers and clients.

Additionally, the SEC has asked Huobi to provide a security deposit for customers if it fails to return all assets within the stipulated time.

A spokesperson from Huobi Global told Cointelegraph: "Huobi Thailand is based on the original Huobi Cloud Thailand project congenital past Huobi Cloud and its local Thai partner G.L.T. Huobi Cloud provides only technical product support and make potency. The current brand authorization and technical service contracts with Huobi Thailand accept expired, and Huobi Cloud will no longer provide support for this projection in the future."

Related: Thai SEC bans exchanges from handling certain token types including NFTs

While Thailand has immune citizens to indulge in crypto investments, the Thai SEC has been issuing regular guidelines to crypto exchanges to dampen the perceived risks associated with trading crypto.

Back in June 2022, the SEC issued a rule that prohibited crypto exchanges from hosting meme-based tokens, fan-based tokens, nonfungible tokens and commutation-issued tokens. The SEC likewise required all coins on the exchange to adhere to the capabilities equally mentioned in their respective white papers.

The Thai SEC has also proposed a new framework that prohibits crypto companies from using investors' assets for whatever business or personal benefits.