Crypto Exchange Zipmex announced the suspension of services in Thailand. After the statement was issued, the company decided to take immediate action to comply with the local regulations. The statement was released on November 25th in which the exchange cleared that it is halting its services instantly to abide by the local regulations of the Securities and Exchange Commission in Thailand.
“To ensure that the business operations of Zipmex Company Limited (“Company”) are appropriate and compliant with the criteria set by the SEC Thailand, the company is required to temporarily suspend the trading and depositing of all types of assets, effective from November 25, 2023, at 1:00 PM onwards.”
The statement highlighted that by the year’s end, customers must contact the exchange if they want to withdraw funds or assets.
“After January 31, 2024, when the company suspends withdrawals through the website and mobile application, customers are required to contact Customer Support for withdrawals,” the statement noted.
Other Challenges Faced by Zipmex
Zipmex has recently faced some challenges and this is also one of its parts. It is reported from some websites that on April 18th, Zipmex had delayed paying its customers and the reason cited for this is to maximize the returns for customers.
The firm also needed a longer suspension on its debt in Singapore amongst the exchange’s liquidity issues. In the intervening period, the company was indulged in a probe by the SEC for breaching local rules on January 10th.
The monetary authorities in Thailand have indulged in a probe on the exchange, for breaching the local rules. As per the report from Bloomberg, the local authorities are looking for ways that they think are violating the business rules for digital asset service providers.
On January 11th, Zipmex was reportedly given just one day (till January 12th) to accept or deny to SEC, without permission it had been acting as a digital asset manager. The investigations are still lasting.
In September 2022, the SEC filed a police report on the firm claiming that the firm and its co-founder Avalarp Yimwilai were not abiding with the local laws. The report includes incomplete information by the cryptocurrency firm regarding compliance with the procedures.
In August, Zipmex was in discussion with the Thai SEC for a potential recovery plan.
The SEC reported that Zipmex had not provided the evidence in their support. They had not provided information on digital asset wallets. There are no details from their side about the crypto transactions in compliance with the country’s Digital Assets Act.
SEC has already announced its plan for implementing stricter plans for the crypto industry that will safeguard the investors. The Thai regulator intends for precise guidelines on crypto ads along with a country-wide ban on crypto lending.
Summary
The Zipmex crypto firm has announced an immediate halt of trading activities in Thailand. The action is taken due to the SEC’s compliance laws. The monetary regulatory service of Thailand finds that the firm is not abiding by the local crypto laws.
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Source: https://www.thecoinrepublic.com/2023/11/27/sec-laws-made-crypto-exchange-zipmex-halt-trading-in-thailand/