The Singapore-based crypto exchange Zipmex, which runs in numerous Asian areas, has declared a temporary pause on all crypto trading and deposits in Thailand. This suspension, beginning from November 25, 2023, is due to regulatory hurdles and cash flow issues in the region.
To ensure that the business operations of Zipmex Company Limited (“Company”) are appropriate and compliant with the criteria set by the SEC Thailand.
The exchange announced the need for a pause to align its work with the rules laid out by Thailand’s primary digital assets authority, the Securities and Exchange Commission (SEC). The exchange also said that customers who wish to withdraw their funds or assets after January 31, 2024, will have to contact its customer support directly.
Zipmex Faces Multiple Hurdles In Asia
Zipmex has experienced operational troubles before. In April 2022, late payments to its customers were reported. The company was trying to “boost customer profits” by investing its money in third-party platforms. But firms like Babel Finance and Celsius ran into cash flow issues, unable to give back Zipmex’s funds.
In January 2023, the exchange faced an investigation by Thailand’s SEC. The company was suspected of breaking new laws set for digital asset service providers, introduced in November 2022. Zipmex and co-founder Akalarp Yimwilai were accused of overseeing a digital asset fund without authorization.
It was also alleged that they did not share info about digital wallets and crypto deals as required by the Digital Assets Act. The SEC had previously submitted a police report against Zipmex in September 2022.
Zipmex Seeks To Regain Trust And Resume Operations
Despite hurdles, the exchange plans to get back to business in Thailand at the earliest. They say they’re actively collaborating with the SEC and other key authorities to sort out problems and gain required permissions. Also, the exchange revealed a deep commitment to protecting their customers and adhering to the laws in force.
Zipmex is seeking new investors, including large corporations, to retrieve its digital assets and reimburse its customers. They’ll also file a lawsuit against Zipmex Global and its trade partners to compensate for customer losses, urging customers to join and apologizing for the suspension inconvenience.
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