Zipmex faces a 15-day deadline to adhere to Thai regulations.
Zipmex, a Singapore-based crypto exchange, has been instructed to temporarily halt its operations in Thailand due to concerns about inadequate business practices. The country’s Securities and Exchange Commission (SEC) has given Zipmex 15 days to address its financial positions and operational deficiencies.
The SEC had previously ordered Zipmex to standardize its management structures and capital maintenance. However, the exchange failed to meet the deadline set by the regulator. Specifically, Zipmex was unable to maintain the required net liquid capital as per local financial policies.
In order to resume operations, Zipmex must implement several solutions within the given timeframe. These include providing proof of internal experts with sufficient business knowledge and establishing a system to prevent the misuse of customer deposits for profit generation.
While the exchange is temporarily suspended, users will still be able to withdraw their funds from the platform. Withdrawals were initially frozen in July 2022 due to the collapse of Terra’s ecosystem and multiple crypto lender bankruptcies.
To address its financial challenges, Zipmex filed for court protection and sought legal assistance to raise capital for creditor payouts. In November, the platform proposed a reorganization plan to pay creditors 30 cents on the dollar. However, this proposal faced opposition from major stakeholders.
Despite these setbacks, Zipmex remains committed to resolving its compliance issues in Thailand and ensuring the security and satisfaction of its users.
