Zipmex to Discontinue Trading and Brokerage of Digital Assets Per Thai Regulator’s Order
There is a 15-day window for Zipmex to fix its finances and put safeguards in place to avoid misappropriation of client money.
The Thai Securities and Exchange Commission (SEC) has given the cryptocurrency exchange Zipmex instructions to stop trading and brokerage of digital assets.
On January 12th, the authorities compelled the problematic cryptocurrency exchange to alter its management and liquid capital maintenance structure. Zipmex had fulfilled these conditions as of February 1st, but the SEC was still not happy.
In a statement made public on Friday, the SEC gave Singapore-based Zipmex 15 days to improve its financial situation and put measures in place to avoid the misuse of client funds.
The SEC announced that starting on February 2, 2024, Zipmex must submit the adjustment’s findings to the SEC within 15 days. Upon gaining authorization from the SEC, Zipmex will be allowed to resume regular business activities.
In December and January, Zipmex said on its website that it had already ended its deposit and trading services and urged clients to take their money out. Upon CoinDesk’s request for comment, the firm did not promptly answer.
In July 2022, Zipmex halted withdrawals after being swept up in the ripple effect of the Terra ecosystem’s demise and the consequent folding of cryptocurrency lenders. In its pursuit of financing to offset its losses, Zipmex sought creditor protection.
As stated in November of last year, Zipmex’s reorganization plan included paying creditors 3.35 cents on the dollar. But the exchange’s biggest creditors wanted to go over its assets and obligations, so they pushed back on the plans.
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