KuCoin platform passes SEC inspection

The Securities and Exchange Commission (SEC) has confirmed customer assets held by ERX Co Ltd, the operator of the digital asset exchange known commercially as KuCoin Thailand, remain safe following an onsite inspection conducted after the company's temporary suspension of operations.

- NUNTAWUN POLKUAMDEE

The SEC carried out the inspection after ordering ERX to temporarily halt its digital asset business from Jan 3 as the company failed to maintain regulatory capital levels as required under Thailand's digital asset regulations.

The regulator emphasised that protecting customer assets was its top priority and confirmed that, as of Jan 6, all client assets were secure.

According to the SEC, ERX's capital position fell below the minimum threshold between Dec 29 and Jan 2, with the level of capital dropping to less than 60% of the required amount for digital asset business operators for a period of five consecutive days.

Under Thai regulations, such a breach automatically triggers supervisory measures, including the suspension of business operations, until compliance is restored.