The crypto exchange Zipmex has suspended all trading activities in Thailand. This decision, as outlined in their recent statement, is aimed at compliance with the standards set by Thailand’s Securities and Exchange Commission (SEC). Additionally, the crypto exchange has guided its customers on withdrawing their funds.
- The crypto exchange faced challenges, including liquidity issues and regulatory probes.
- Zipmex filed for bankruptcy protection in Singapore this year.
After January 31, 2024, users seeking fund or asset withdrawals will need to directly engage with Zipmex’s customer support, as withdrawals through their website and app will cease. The suspension adds to a series of challenges that Zipmex has recently encountered. In April, the exchange requested an extension on its debt in Singapore due to liquidity concerns and previous regulatory probes.
Zipmex has been under the SEC’s radar since September 2022, when the commission reported non-compliance issues related to local laws. Subsequent investigations escalated, with recent probes specifically focusing on allegations regarding digital asset fund management without authorization.
See Related: Thailand Tightens Crypto Rules In The Wake Of The FTX Collapse And Market Volatility
Zipmex And Mounting Liquidity Issues
Last year, Zipmex filed for an extension to its moratorium agreement in Singapore’s bankruptcy court, according to a report by Coindesk. This step was triggered by the crypto contagion arising from the collapse of the $60 billion Terra ecosystem. Loans extended to entities like Babel Finance and Celsius Network went unpaid amidst Terra’s collapse, contributing to Zipmex’s financial turmoil.
Zipmex’s solicitors initiated the bankruptcy protection filing on behalf of the company’s distinct entities, spanning several jurisdictions, aiming to secure legal protection against actions by third parties and claims for up to six months. The five entities that sought protection include Zipmex Asia Pte. Ltd., Zipmex Pte. Ltd., Zipmex Company Ltd. (Thailand), PT Zipmex Exchange Indonesia, and Zipmex Australia Pty. Ltd.
