Zipmex Thailand, grappling with regulatory challenges, has taken a significant step by suspending new deposits and trading on its exchange.
The decision, as outlined in a statement on the exchange’s Facebook page, is attributed to the need for compliance with Thailand’s Securities and Exchange Commission (SEC).
In clarifying the situation, Zipmex emphasized that withdrawals would continue as usual until January 31, 2024. After this date, customers are advised to reach out to the exchange’s customer support team for assistance in withdrawing funds.
The exchange, headquartered in Singapore and serving multiple countries including Thailand, Australia, and Indonesia, is currently facing penalties from Thailand’s SEC.
The penalties are linked to allegations of Zipmex Thailand’s improper use of a digital asset custodian service and directing customers to the Singapore-based exchange Zipmex Pte, creating a potential conflict of interest.
Beyond regulatory hurdles, Zipmex has encountered financial challenges, struggling to repay creditors following losses tied to exposure to crypto lenders Babel Finance and Genesis.
Earlier this year, a planned $100 million buyout of Zipmex faced a setback when the reported buyer, V Ventures, withdrew from the purchase, adding to the exchange’s woes.
Zipmex Thailand has not provided immediate comments on the situation, underscoring the complexities and uncertainties surrounding its current predicament.
