Thai SEC Orders Zipmex to Cease Operations Temporarily
The Thai Securities and Exchange Commission (SEC) has issued a directive to Zipmex, a digital asset trading and brokerage platform, to temporarily halt its operations. The SEC has demanded that the exchange make changes to its management structure and improve its financial position in order to comply with regulatory standards.
15-Day Countdown for Regulatory Compliance
In a statement on February 2, the SEC announced the temporary ban on Zipmex due to non-compliance. The exchange had previously received an order on January 12 to adjust its net liquid capital maintenance and modify its business administration structure. However, after a committee meeting on February 1, the SEC found that Zipmex had not complied with the directives, leading to the suspension of its operations from February 2. The exchange now has 15 days to implement the SEC’s orders on financial operation and address operational deficiencies.
Possible Shutdown for Zipmex?
Zipmex has not yet responded to the SEC’s directive. The exchange has been under regulatory scrutiny since filing for moratorium relief in 2022 for a debt owed to customers. In November 2023, Zipmex proposed a debt repayment plan, but trading and deposit services were disabled following an SEC order regarding net liquid capital. In January, customers were advised to withdraw their assets, indicating a potential shutdown. The SEC has instructed that withdrawals remain available during the ban, although they must be done manually through customer care.
Hot Take: Uncertain Future for Zipmex
The recent order from the Thai SEC raises concerns about the future of Zipmex as it faces regulatory challenges and financial difficulties. The exchange’s failure to comply with regulatory directives has resulted in a temporary halt of its operations. With a 15-day deadline to address deficiencies, Zipmex must make significant changes to its management structure and financial position to resume operations. The uncertainty surrounding the exchange’s compliance and potential shutdown highlights the importance of regulatory compliance in the crypto industry.
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