KuCoin Thailand moves to resolve shareholder dispute and raise capital after SEC suspension over capital shortfall

Thailand’s Securities and Exchange Commission (SEC) has suspended all types of digital-asset business operations of ERX Company Limited (KuCoin Thailand) after finding its capital level fell below the minimum capital maintenance requirement for five consecutive working days, from December 29, 2025 to January 2, 2026.

Att Thongyai Asavanund, chief executive officer of ERX Company Limited (KuCoin Thailand), said the issue was not caused by a direct shortage of the company’s financial liquidity. Instead, he said, it stemmed from an internal conflict between two major shareholder blocs: the CI group (a fund from Singapore) and an alliance group described as close friends of KuCoin Global.

“When disagreements emerged and some directors resigned, we were unable to convene a shareholders’ meeting to approve a capital increase, even though the shareholder side that wants to continue operating was already ready with funding,” Att said.

He added that the company has sufficient assets and capital, but the problem lies in the “accounting method” and the application of NC criteria used in the securities business to the digital-asset (DA) business, which differs structurally.

In the conventional securities business, settlement is conducted on a T+2 basis, requiring cash to be set aside to clear accounts between brokers. In contrast, digital-asset trading operates on a cash-balance basis, where payment and settlement are completed immediately.

Nevertheless, to comply with the SEC’s strict rules, the company said it submitted a concrete corrective plan to the SEC on January 12. The plan focuses on restructuring the shareholder structure so the company can continue operating.

The core of the plan submitted to the SEC is to end the shareholder-level conflict by restructuring the company so that only one shareholder group retains full decision-making authority. This is expected to be the KuCoin alliance group, which sees the potential of the Thai market and wants to continue the business, by buying out the shares of the problematic party. Under the announced plan, the process must be completed by February 12.

Beyond addressing the immediate capital issue, KuCoin Thailand is also preparing a major strategic shift. It plans to apply for a digital-asset broker licence instead of focusing solely on operating as an exchange.

Att said operating an exchange is like running a stall at Bangkok’s Chatuchak Market, where products are limited and buyers must browse stall by stall. A broker model, he said, is more like an e-commerce platform such as Lazada or Shopee, able to bring a wide range of financial products from global partners into one place, making it easier and faster for customers to access what they want. He said moving towards a broker model would help differentiate the company in a highly competitive market over the long term.

The company said it remains confident that Thailand’s digital-asset market still has strong potential. While there are many competitors, shifting towards a broker model connected to global markets would create an advantage—especially as investors increasingly look for alternatives beyond a sluggish stock market.