Thailand’s Securities and Exchange Commission (SEC) has mandated the cryptocurrency exchange Zipmex to halt its digital asset trading and brokerage operations for a temporary period. This directive was issued as part of a broader regulatory action aimed at addressing the exchange’s operational and financial challenges.
On February 2, the SEC announced that Zipmex is given a 15-day window to amend its financial and operational shortcomings as previously stipulated by the regulator. The SEC outlined that the resumption of normal activities by Zipmex is contingent upon the fulfillment of these regulatory prerequisites, ensuring that during this interim, customers retain the ability to withdraw their funds.
Anek Yuyuen, the SEC Deputy Secretary General, elaborated on the legal framework, stating that failure to adhere to the SEC’s directives within the allotted timeframe could lead to the SEC recommending the revocation of Zipmex’s operational license by the Minister of Finance. This comes against the backdrop of increased regulatory scrutiny faced by Zipmex from the SEC since 2023, triggered by the downturn in the cryptocurrency market and concerns over the exchange’s compliance with local regulations.
The scrutiny intensified following an investigation into Zipmex’s activities, including a probe into its acquisition by V Ventures and allegations of operating without the necessary regulatory approval in Thailand. In response to regulatory pressures, Zipmex had previously paused its trading activities in November 2023, citing efforts to align with regulatory standards.
Originating from Singapore, Zipmex sought debt relief in 2022 amidst claims of owing customers around $97 million. By November 2023, the exchange proposed a restructuring plan, offering creditors a settlement of 3.35 cents on the dollar for initial claims, as part of its strategy to navigate through its financial difficulties.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up