Zipmex, a Singapore-based crypto exchange, is facing regulatory challenges in Thailand, prompting the platform to temporarily halt its operations to address compliance issues with local laws. The Securities and Exchange Commission (SEC) in Thailand issued a directive for Zipmex to cease its crypto exchange and digital asset brokerage services until necessary changes are made to rectify financial discrepancies and operational shortcomings.
Previously, Zipmex was instructed to adhere to standard management practices and maintain adequate capital reserves, but the platform failed to meet the deadline set by the SEC. The regulator found that Zipmex was unable to maintain the required net liquid capital according to local financial regulations.
In response, Thailand’s SEC has given Zipmex a 15-day window to implement corrective measures, such as demonstrating the presence of internal experts with the requisite business acumen and establishing safeguards to prevent the misuse of customer deposits for profit-making purposes.
Despite the temporary suspension of operations, users will still be able to withdraw their funds from the platform. Withdrawals were initially frozen in July 2022 due to the aftermath of Terra’s ecosystem collapse and the subsequent bankruptcies of multiple crypto lenders.
Facing financial challenges, Zipmex has sought court protection and legal assistance to secure funding for creditor payouts. In November, the platform proposed a reorganization plan to repay creditors at a rate of 30 cents on the dollar, but the proposal faced opposition from key stakeholders.
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