Zipmex, a prominent cryptocurrency exchange, has recently taken decisive action to comply with regulatory requirements in Thailand.
In an official statement released on November 25, the exchange announced the suspension of all digital asset trading activities in the country.
This move comes as part of Zipmex’s commitment to aligning itself with the regulations set forth by the Securities and Exchange Commission (SEC) of Thailand.
The statement from Zipmex read, “To ensure that the business operations of Zipmex Company Limited (‘Company’) are appropriate and compliant with the criteria set by the SEC Thailand, the company is required to temporarily suspend the trading and depositing of all types of assets, effective from November 25, 2023, at 1:00 PM onwards.”
It further emphasized that customers seeking to withdraw their funds or assets should directly contact the exchange.
Additionally, the statement highlighted a crucial deadline for customers: “After January 31, 2024, when the company suspends withdrawals through the website and mobile application, customers are required to contact Customer Support for withdrawals.”
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This proactive approach aims to ensure that customers can access their assets smoothly during this transitional period.
This decision to suspend operations follows a series of challenges that Zipmex has faced in recent times.
Back in April, the exchange made headlines when it delayed payments to its customers in an effort to maximize returns.
Furthermore, Zipmex sought an extension to extend the moratorium on its debt in Singapore due to liquidity issues.
The SEC of Thailand had also been closely scrutinizing Zipmex. In January, the exchange became the subject of an SEC probe for alleged breaches of local regulations.
The SEC gave Zipmex a one-day ultimatum to admit or deny operating as a digital asset fund manager without proper authorization.
This investigation had been ongoing, with the SEC filing a police report in September 2022, accusing Zipmex and its co-founder, Akalarp Yimwilai, of noncompliance with local laws.
One of the specific concerns raised by the SEC was Zipmex’s failure to provide information on digital wallets and crypto transactions in accordance with Thailand’s Digital Assets Act. Zipmex’s decision to temporarily suspend trading and align with regulatory requirements in Thailand represents a significant step towards addressing these concerns and ensuring compliance with local laws.
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