Thailand’s SEC Orders Zipmex to Suspend Trading and Brokerage Services
Thailand’s Securities and Exchange Commission (SEC) has instructed cryptocurrency exchange Zipmex to temporarily suspend its digital asset trading and brokerage services starting from February 2. The SEC has given Zipmex a 15-day period to address its financial position and operational deficiencies. Once the requirements set by the regulator are fulfilled, Zipmex will be allowed to resume normal operations. During the suspension, customers must be able to withdraw their assets at any time.
Zipmex Suspension Ends Upon Fulfillment of Requirements
The SEC previously directed Zipmex to revise its liquid capital maintenance and management structure on January 12. However, as of Thursday, the SEC was dissatisfied with Zipmex’s compliance with these requirements.
Zipmex’s Regulatory Issues
Zipmex has already discontinued trading and deposit services, urging customers to withdraw their assets. The exchange has been under regulatory scrutiny since December 2022 and is being investigated for an acquisition by V Ventures and allegations of operating in Thailand without regulatory approval. In November 2023, Zipmex suspended trading in an effort to comply with regulations. The exchange had filed for debt relief in 2022, owing customers $97 million. Creditors are currently seeking a comprehensive examination of the exchange’s assets and liabilities.
Hot Take: Thailand Cracks Down on Crypto Exchange
Thailand’s SEC has taken action against Zipmex, ordering the exchange to suspend its trading and brokerage services due to concerns about its financial position and operational deficiencies. This move follows ongoing regulatory scrutiny of Zipmex since December 2022. The exchange has faced investigations into its acquisition by V Ventures, allegations of operating without regulatory approval, and debt relief filings. The suspension will be lifted once Zipmex fulfills the requirements set by the SEC. This development highlights the increasing regulatory pressure faced by cryptocurrency exchanges and the need for compliance with financial regulations in the crypto industry.
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