In a significant development for the cryptocurrency industry in Thailand, the country’s Securities and Exchange Commission (SEC) has mandated the temporary suspension of digital asset trading and brokerage services by the crypto exchange Zipmex. This directive was issued on February 2, following concerns regarding the exchange’s financial stability and operational integrity.
The SEC’s announcement highlighted a 15-day ultimatum given to Zipmex, during which the exchange is required to address and rectify its financial and operational shortcomings as previously instructed by the regulatory authority. The SEC emphasized the importance of Zipmex meeting these stipulations to ensure the resumption of its normal activities. In the interim, the SEC has stressed that it is imperative for users to retain the ability to withdraw their funds without hindrance.
Anek Yuyuen, the SEC Deputy Secretary General, elaborated on the regulatory framework, stating, “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 that the Minister of Finance consider revoking the order.” This underscores the rigorous standards and compliance expectations set forth by Thai regulatory bodies for entities operating within the digital asset space.
Zipmex’s journey through regulatory scrutiny commenced in 2023, following a downturn in the cryptocurrency market that brought several operational challenges to the fore. The exchange found itself at the center of a regulatory probe concerning its acquisition by V Ventures and allegations of conducting business in Thailand without the necessary regulatory approvals. In an attempt to align with regulatory requirements, Zipmex had previously halted its trading operations in November 2023.
The Singapore-based exchange’s financial woes became evident when it filed for debt relief in 2022, with reported liabilities amounting to $97 million owed to its customers. By November 2023, Zipmex had proposed a restructuring plan offering creditors a settlement of 3.35 cents per dollar on initial claims, reflecting the exchange’s efforts to navigate through its financial predicaments.
This incident not only highlights the challenges faced by cryptocurrency exchanges in maintaining regulatory compliance but also underscores the vigilant stance adopted by regulatory authorities like Thailand’s SEC in safeguarding investor interests and maintaining the integrity of the digital asset ecosystem.
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