The Securities and Exchange Commission of Thailand has directed Zipmex, a cryptocurrency exchange, to temporarily halt its digital asset trading and brokerage services, effective from February 2nd.
According to an announcement made on February 1st, the SEC has granted Zipmex a 15-day grace period to rectify its financial situation and resolve operational shortcomings.
Zipmex Suspension Ends Upon Fulfillment of Requirements
On January 12th, the SEC had initially instructed Zipmex to restructure its liquid capital maintenance and management system. However, as of Thursday, the SEC expressed dissatisfaction with Zipmex’s adherence to these requirements.
The SEC clarified that once Zipmex successfully meets the regulator’s stipulations, the cryptocurrency exchange will be allowed to resume its regular operations. During the service suspension period, Zipmex is obligated to provide its customers with the ability to withdraw their assets at any given time.
Anek Yuyuen, the Deputy Secretary General of the SEC, explained, “In accordance with the legal process, if the digital asset business operator fails to comply with the SEC’s directives within the specified timeframe, the SEC may recommend to the Minister of Finance that the order be revoked.”
Zipmex’s Regulatory Issues
Zipmex had already ceased its trading and deposit services and had been actively encouraging its customers to withdraw their assets, as stated in announcements posted on its website in both December and January.
The regulatory scrutiny from the Securities and Exchange Commission (SEC) had been hovering over Zipmex since December 2022, primarily stemming from the crypto market’s downturn. The exchange had come under investigation for its acquisition by V Ventures and allegations of operating in Thailand without proper regulatory approval.
In November 2023, Zipmex halted its trading activities, explaining it as a measure to align with regulatory requirements. This Singapore-based exchange had filed for debt relief in 2022, with reports suggesting it owed customers a substantial $97 million.
In response to this situation, Zipmex had initially proposed to offer creditors a payout of 3.35 cents per dollar for their initial claims as part of its restructuring efforts. However, major creditors had deferred these proposals, insisting on a thorough examination of the exchange’s assets and liabilities.