Immediate Halt on Operations
Amidst regulatory challenges, Zipmex, a crypto exchange based in Singapore, has been directed to cease its operations in Thailand. The company is now under scrutiny for not adhering to local financial regulations, leading to an enforced pause to rectify its business practices.
Regulatory Demands and Deadlines
The Thai Securities and Exchange Commission (SEC) has identified several operational deficiencies within Zipmex’s structure. It has been mandated that the exchange must address issues regarding its financial position and management strategies. Previously, Zipmex was instructed to reform its management structures and assure appropriate maintenance of capital but did not meet the Thai SEC’s deadline.
Financial Viability in Question
Regulatory authorities have expressed concerns over Zipmex’s inability to maintain the required net liquid capital in line with Thailand’s financial policies. The SEC has now given Zipmex a 15-day ultimatum to implement corrective measures, such as proving the expertise of internal staff and establishing safeguards against the misuse of customer funds.
Compliance and Resumption of Services
Zipmex is required to submit evidence of these corrections by . Upon approval from the SEC, the exchange will be permitted to resume its services in Thailand. However, during this suspension period, Zipmex has kept withdrawal services active to allow customers to access their assets, a move that follows a temporary freeze on withdrawals in July 2022 due to the fallout from Terra’s ecosystem collapse.
Forward-Looking Strategies
Following financial distress exacerbated by a series of events in the crypto market, including multiple crypto lender bankruptcies, Zipmex sought legal protection and devised a reorganization plan to address creditor concerns. Despite presenting a plan to repay creditors at a reduced rate, Zipmex faces resistance from key stakeholders, indicating a challenging road ahead for the exchange.
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