Thailand’s Securities and Exchange Commission instructed cryptocurrency exchange Zipmex to temporarily suspend its digital asset trading and brokerage services beginning February 2.
In a February 1 announcement, the SEC said that Zipmex has been given a 15-day period to fix its financial position and address operational deficiencies.
Zipmex Suspension Ends Upon Fulfillment of Requirements
The SEC had previously directed Zipmex to revise its liquid capital maintenance and management structure on January 12. As of Thursday, however, the SEC was dissatisfied with Zipmex’s compliance with these requirements.
Ah, another temporary suspension of services! Because who needs stable financial markets anyway? 😏 #Thailand #Zipmex
— MichealDew (@ecmiakcat) February 2, 2024
Once Zipmex fulfills the requirements set by the regulator, the crypto exchange will be permitted to resume normal operations, the SEC noted. During the suspension of service, Zipmex must also provide customers with the ability to withdraw assets at any time.
“According to the process specified by law. If the digital asset business operator is unable to comply with the SEC’s orders […] within the specified period, the SEC may propose that the Minister of Finance consider revoking the order,” SEC Deputy Secretary General Anek Yuyuen said.
Zipmex’s Regulatory Issues
Zipmex has already discontinued trading and deposit services, and encouraged its customers to withdraw their assets, according to announcements on its website in December and January.
Zipmex has been under regulatory scrutiny from the Securities and Exchange Commission (SEC) since December 2022, following the downturn in the crypto market. The exchange was reportedly under investigation regarding an acquisition by V Ventures and allegations of operating in Thailand without regulatory approval.
In November 2023, Zipmex suspended trading, citing the move as an effort to comply with regulations. The Singapore-based exchange had filed for debt relief in 2022, allegedly owing customers $97 million.
Following this, Zipmex was reportedly looking to provide creditors with 3.35 cents per dollar for initial claims as part of its restructuring initiatives. However, major creditors deferred the proposals, seeking a comprehensive examination of the exchange’s assets and liabilities.