Thai SEC Places Temporary Suspension on Zipmex Crypto Exchange Amid Regulatory Investigations
Summary:
Thailand's Securities and Exchange Commission (SEC) has temporarily halted Zipmex's services, instructing the crypto exchange to rectify its financial and operational issues within 15 days. The move follows investigations into Zipmex's operations and an acquisition by V Ventures. The Singapore-based exchange, which owes customers $97 million, suspended trading activities in November 2023 as part of its restructuring plan. The lift on suspension relies on Zipmex's compliance with the SEC's orders.
The Securities and Exchange Commission (SEC) of Thailand has placed a temporary ban on Zipmex, forcing the crypto exchange to suspend its digital asset services including trading and brokerage. The announcement, made on February 2, stipulated that Zipmex was granted a 15-day period to rectify its financial situation and to fix operational issues as previously directed by the financial watch dog. The SEC detailed that the resumption of Zipmex's regular services is contingent on the crypto exchange satisfying all specified requirements, during which client fund withdrawals should be facilitated.
SEC Deputy Secretary General Anek Yuyuen affirmed that the regulator would propose the Financial Minister contemplate rescinding the order in the event the digital asset operating company fails to adhere to the SEC's instructions within the given time frame. Zipmex has been subjected to SEC scrutiny since 2023 after a drop in the crypto market. Investigations were instigated into an acquisition by V Ventures concerning the crypto exchange's operations in Thailand without official approval.
In November 2023, Zipmex halted trading activities in an endeavour to comply with regulations. Zipmex, which is based in Singapore, submitted a debt relief application in 2022, with customers reportedly owed $97 million. Zipmex indicated by November 2023, in a bid to streamline its restructuring process, it could offer creditors an initial 3.35 cents compensation per dollar to address their claims.
Published At
2/2/2024 7:26:42 PM
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