Zipmex will have to hit pause in Thailand and adjust its compliance with local laws after warnings of inadequate business practices.
Zipmex received instructions to immediately halt its crypto exchange and digital asset brokerage services in Thailand pending changes to the platform’s financial positions and operational deficiencies.
The crypto exchange was previously ordered to standardize management structures and capital maintenance, but Zipmex failed to comply with the deadline set by Thailand’s Securities and Exchange Commission (SEC).
According to the regulator, Singapore-based Zipmex could not maintain net liquid capital as required by local financial policies.
Thailand’s SEC has allowed the crypto exchange 15 days to implement solutions, including providing proof of internal experts with sufficient business know-how and creating a system to prevent misuse of customer deposits for profit generation.
In this regard, Zipmex shall submit the results of the correction to the SEC within 15 days from February 2, 2024. Zipmex will be able to resume normal business operations upon receiving permission from the SEC.
Thailand SEC notice
While the crypto exchange must temporarily suspend all operations, withdrawals will remain open to allow users to exit the platform. Withdrawals were initially frozen in July 2022 due to the cascading effects of Terra’s ecosystem collapse.
Coupled with multiple crypto lender bankruptcies, Zipmex filed for court protection and sought legal assistance to raise capital for creditor payouts. The platform put forth a reorganization plan in November to pay creditors 30 cents on the dollar, but the proposal met stiff opposition from major stakeholders.