Thailand SEC Orders Zipmex to Suspend Services
The Thailand Securities and Exchange Commission (SEC) has instructed cryptocurrency exchange Zipmex to temporarily halt its trading and brokerage services. This suspension will remain in effect for 15 days until Zipmex resolves its financial and operational issues.
SEC’s Letter to Zipmex
The SEC sent a letter to Zipmex on January 12, requesting that the exchange address its net liquid capital maintenance and business management structure. However, as of January 27, Zipmex had not met the requirements. During a meeting on February 1, the SEC determined that the exchange’s efforts were insufficient, leading to the temporary suspension of operations.
Customer Withdrawals Allowed
While Zipmex is suspended, customers are still able to withdraw their assets. The exchange must comply with customers’ wishes regarding the handling of their funds.
Expectations for Corrections
The SEC expects Zipmex to submit the results of its corrections by February 17. This includes rectifying the company’s financial position, implementing measures to prevent user deposits from being misused, and providing appropriate personnel to avoid customer harm.
“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 revoking the order,” stated Anek Yuyuen, Deputy Secretary General and SEC Spokesperson.
Troubles for Zipmex
This order from the SEC comes after Zipmex proposed repaying creditors 3.35 cents per dollar as part of its restructuring efforts. The exchange has faced difficulties since July 2022 when it froze withdrawals due to the impact of Terra’s collapse. In November, Zipmex suspended crypto trading and deposits for Thai customers to meet the SEC’s requirements.
Hot Take: Zipmex Faces SEC Suspension Amidst Financial and Operational Challenges
Thailand’s SEC has taken action against Zipmex, ordering the exchange to temporarily halt its services until it resolves its financial position and operational issues. This suspension comes after Zipmex failed to meet the SEC’s requirements and was unable to adequately address deficiencies. While customers can still withdraw their assets, Zipmex must rectify its situation by implementing necessary corrections. Failure to comply may result in further consequences from the SEC. This development adds to Zipmex’s ongoing troubles, which began with withdrawal freezes in response to Terra’s collapse. The exchange’s proposed repayment plan for creditors has also faced opposition. It remains to be seen how Zipmex will navigate these challenges and regain regulatory compliance.
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