Zipmex Thailand Suspends Crypto Trading for SEC Compliance
Crypto exchange Zipmex Thailand has temporarily suspended digital asset trading and deposits to ensure compliance with the country’s Securities and Exchange Commission (SEC) criteria. The decision was announced in a Facebook post, stating that the suspension will be effective from November 25, 2023. However, customers can still withdraw Thai baht and digital assets until January 31, 2024, after which they will need to contact Customer Support for assistance. Withdrawal processes may take up to 14 days, requiring customers to provide supporting documents for verification.
Penalties and Challenges Faced by Zipmex
Zipmex Thailand is currently facing penalties from the SEC due to allegations of improper use of a digital asset custodian service and conflicts of interest with its Singapore-based exchange, Zipmex Pte. Additionally, the platform has struggled to repay creditors after losses from exposure to crypto lenders Babel Finance and Genesis. A planned $100 million buyout earlier this year fell through when the buyer withdrew from the purchase.
Zipmex’s Previous Challenges and Liquidity Crunch
Last summer, Zipmex halted withdrawals due to volatile market conditions and financial difficulties faced by its business partners. The exchange expressed its intention to pause withdrawals until further notice. In August last year, discussions were held with potential investors and regulators for a recovery plan. By November, talks with venture capital fund V Ventures were underway for a majority stake sale. The Thai SEC has also been investigating whether Zipmex violated local rules in offering certain digital asset products.
Hot Take: Zipmex’s Compliance Suspension Reflects Growing Regulatory Scrutiny
Crypto exchange Zipmex Thailand’s decision to suspend trading temporarily highlights the increasing importance of regulatory compliance in the crypto industry. By adhering to the criteria set by Thailand’s SEC, Zipmex aims to ensure proper and compliant business operations. This move comes amidst penalties faced by the platform for alleged misconduct and conflicts of interest. It also reflects the challenges faced by Zipmex, including difficulties in repaying creditors and failed acquisition attempts. With regulatory scrutiny intensifying, crypto exchanges need to prioritize compliance to maintain trust and credibility in the market.
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