Crypto exchange Zipmex Thailand has announced a temporary suspension of digital asset trading until early next year to ensure compliance with Thailand’s Securities and Exchange Commission (SEC). In a Facebook post, Zipmex Limited stated that the suspension is necessary to conduct business operations in accordance with SEC criteria:
“Dear customers, Zipmex Limited would like to ensure the proper and compliant conduct of the company’s business operations in accordance with the criteria set by Thailand’s Securities and Exchange Commission (SEC). Therefore, it is necessary for the company to temporarily suspend digital asset trading and deposit of all types, effective from Nov 25, 2023, at 1pm onwards.”
However, customers will still be able to withdraw Thai baht and digital assets from their Trade Wallet through the website and mobile application until January 31, 2024. For digital assets categorized as ‘Trade Only,’ customers must contact Customer Support for withdrawal. After January 31, 2024, customers will need to reach out to Customer Support for further assistance with withdrawals.
The withdrawal process for digital assets may take between seven to 14 days, and customers must provide supporting documents to verify their identity and account ownership.
Penalties and Challenges
Zipmex Thailand is currently facing penalties from Thailand’s SEC due to allegations of improper use of a digital asset custodian service and the funneling of customers to the Singapore-based exchange, Zipmex Pte, which created a conflict of interest.
In addition to these challenges, Zipmex has encountered difficulty repaying creditors after suffering losses from exposure to crypto lenders Babel Finance and Genesis. A planned $100 million buyout of Zipmex earlier this year fell through when the buyer, reportedly V Ventures, withdrew from the purchase.
Last summer, the exchange announced a halt in withdrawals due to volatile market conditions and liquidity crunch resulting from exposure to troubled crypto lender Babel Finance. Zipmex expressed the need to maintain the integrity of their platform:
“Due to a combination of circumstances beyond our control, including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice.”
In August last year, Zipmex revealed plans to meet with potential investors and Thailand’s financial regulator to discuss a recovery plan. By November, the platform was in advanced discussions with venture capital fund V Ventures over the sale of a majority stake. This year, the Thai Securities and Exchange Commission initiated an investigation into Zipmex’s compliance with local rules regarding certain digital asset products.
