As global regulators seek to provide comprehensive regulations for digital assets, most crypto exchanges have prioritized improving their compliance level to operate as regulated entities.
On Friday, November 25, the prominent crypto exchange in Singapore, Zipmex, took strategic action to meet the new regulatory requirements in Thailand. The crypto exchange announced the indefinite suspension of trading and depository services on the Zipmex platform in Thailand.
Crypto Exchange Zipmex Suspend Operation in Thailand
The crypto exchange confirmed that the decision to suspend its operation emanated from the need to comply with the Securities and Exchange Commission (SEC) requirements. With the changes in Thai crypto regulation, the Zipmex team agreed to focus on fulfilling the SEC requirements.
Last year, the Thai SEC accused Zipmex and the co-founder Akalarp Yimwilai of breaching the securities law. The SEC reported the case to the Thai police, claiming that Zipmex violated Section 75 of the Digital Assets Act.
The market regulators stated that the SEC requested Zipmex to provide a detailed report concerning its business practices and operation. After reviewing the report submitted by Zipmex to the SEC, the regulators noted that some of the reports were incomplete and data was unreliable.
This compliance challenge forced Zipmex to suspend trading and depository services as of November 25. The unexpected suspension of Zipmex’s operation in Thailand has created mixed feelings among the customers.
Responding to the multiple queries from the affected customers, the Zipmex team outlined the withdrawal procedure. The crypto exchange advised the customers to contact the support team if they encounter challenges withdrawing their assets.
Thai SEC Accuses Zimpex for Violating Crypto Regulations
In the latter, the Zipmex team confirmed that the crypto exchange will suspend all withdrawals at the end of January next year. It implies that the Zipmex withdrawal feature on the website or the mobile application will be unavailable from next year.
Therefore, Zipmex customers are advised to start the withdrawal process immediately. Since the collapse of the Bahamian crypto exchange FTX, Zipmex struggled to overcome the challenges in the crypto sector.
The Zipmex team reportedly lost approximately $5 million in the now-defunct crypto lender Celsius. The crypto exchange also lost measurable funds on Babel Finance and Genesis Global. Months after the FTX implosion, the Zipmex team made several attempts to repay the creditors.
Zipmex Request for Debt Repayment Extension
Earlier this year,the crypto exchange was in the process of being acquired by V Ventures at $100 million. This development failed to materialize after V Venture ditched the Zipmex acquisition plans.
After failing to restore a considerable financial position, the Zipmex team is at the edge of being insolvent. Due to the financial crises facing Zipmex a court in Singapore advised the firm to develop a restructuring plan by December last year.
Guided by Section 64 of the Insolvency, Restructuring, and Dissolution Act 2018 Zipmex requested a court in Singapore to extend the deadline for its debt repayment plans. The court report revealed that Zipmex needed extra time to increase customers’ value.
