Bitkub, the most heavily trafficked crypto exchange in Thailand, announced today that it will stop accepting new customers in the foreseeable future to address issues recently identified by regulators.
The Thai Securities and Exchange Commission ordered the popular platform to halt accepting new clients until it improves its technical infrastructure to cope with high levels of demand. According to a report in the Bangkok Post, the suspension covers all onboarding stages, including client registration, pending applications and identity verification processes.
Regulators have issued improvement orders for Bitkub and other Thai cryptocurrency exchanges after users were blocked from trading during significant price spikes in January.
On January 20, the financial watchdog gave the exchange five days to solve the technical issues after three separate incidents. Mainly, their desktop platform suffered trading outages, the longest of which lasted 16 hours, prompting concerns that Bitkub may not be able to handle current turnover let alone hold capacity for future surges.
Bitcoin Activity Causes Platform Failure
The major reason behind the rising number of outages was the spike in crypto prices, specifically related to intense trading volumes or Bitcoin’s restless bull runs. Customers voiced their displeasure about technical difficulties that hinder activity at Bitkub, as it prevented them from taking advantage of the Bitcoin activity.
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A source quoted by Bangkok Post said Bitkub not only needs to address constant interruptions in the services but was also required to handle additional issues, including allowing customers to withdraw their funds immediately in case of a system failure. Additionally, the popular platform was ordered to provide a verification system to accurately verify customers’ identity and cater to the growing number of Thai investors flocking to cryptos.
Finally, Bitkub was asked to submit a business continuity plan during emergency cases and a complaint system to address customers’ claims.
Bitkub, which acknowledged the SEC’s resolution and shut down client onboarding, is reportedly the largest crypto exchange in Thailand, accounting for some 90% share of the local market.
Despite the ongoing development in crypto exchanges’ technical infrastructure and engineering staff, the latest incident reminds crypto traders that access to even major platforms may become degraded or unavailable during times of significant volatility or volume.