Thailand Regulatory Body Bars Bitkub From Registering New Customers

News / 06.02.2021

Thailand Securities and Exchange Commission has directed crypto exchange Bitkub to stop accepting new customers on their platforms. This directive comes after the exchange shut down temporarily in January due to the influx of new customers on its platform.

Regulatory Demands Not Met By BitKub 

Bitkub acknowledged the directive from the regulatory body and revealed in a statement that it would suspend the registration of new users. The development comes after the exchange suffered a major technical problem in January.

In the first few weeks, bitcoins’ rise led to increasing demand for the currency on Bitkub and overwhelmed the exchange. The desktop platform suffered multiple outages, with the longest-lasting for 14 hours. This prompted concerns that the exchange may not handle current users, let alone new users.

Bitkub users also voiced their displeasure about the technical problems since it prevented them from taking advantage of Bitcoin’s bullish price spikes. Following these incidents, the SEC gave Bitkub five days to resolve its technical issues or risk further regulatory sanctions.

The regulatory body also informed the exchange to provide a verification system to verify customers’ identity accurately. Also, Bitkub was directed to submit a business contingency plan for emergency cases and provide a complaint system to address customer’s problems.

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. Bitkub is reportedly the largest crypto exchange in Thailand and accounts for more than 90% of the Asian nation’s transactions.

Exchanges Usually Struggle During High Volatility Period

The problem that faced Bitkub is one that is not new within the crypto space. Exchanges typically face difficulties during price spikes of popular cryptocurrencies like Bitcoin. Popular exchanges like Binance and Coinbase are known to suffer technical issues during spikes in Bitcoin prices.

Coinbase recently acquired transaction optimization platform Routefire in a bid to prevent technical problems and improve its infrastructure. The latest incident reminds crypto traders that access to even major platforms may become degraded or unavailable during times of significant volatility or volume.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.