- 1 Zipmex, once undergoing financial issues in 2022, got a chance to manage its financial positioning.
- 2 The Thai SEC orders the exchange to correct financial positioning and restructure the business within 15 days.
Zipmex, a global digital asset exchange received an order from Thailnad’s Securities and Exchange Commission (SEC) to correct its financial standing. On February 2, 2024, the regulator ordered the crypto exchange to suspend all services temporarily for 15 days and focus on the financial standing and operational deficiencies.
The Thai SEC’s Order
Zipmex has been under regulator surveillance since 2023 and suspended trading in November 2023. The exchange faced issues by V Ventures and operated in Thailand without regulatory approval.
According to the legislative body, Zipmex can resume its normal operation only if the exchange meets the legal requirements within 15 days.
As of now, the SEC ordered the exchange to discontinue all operations and services for a temporary period and focus on managing the financial positioning as well as meeting the legal requirements.
Additionally, the regulatory also ordered to offer customers permission to withdraw the assets any time they want. Moreover, the customers could be assisted with receiving money and assets back as per their wish.
Furthermore, under the Digital Asset Business Operations Act of 2018 (Digital Assets Act) Section 15 Zipmex must maintain the funds and improve its financial position. According to Sections 10 & 8, the exchange must modify its management and structure to be able to operate efficiently in the crypto world.
The exchange is allowed to submit the final report to the SEC within 15 days from February 2, 2024
What Happened with Zipmex?
The global digital asset exchange has been interacting with the SEC since 2023 due to some major issues. The exchange was probed by local regulations breaching the rules for financial and digital asset services.
Continuing the case, Zipmex discontinued trading services in November 2023. Furthermore, the SEC permitted the exchange to clarify whether it has been operating as a digital asset fund manager without permission by January 12, 2024.
“If Zipmex wishes to operate in Thailand, the exchange must follow the rules and regulations”, said SEC.
However, Zipmex came into a flashlight in July 2022 when the company publicly faced financial disruption. Halting withdrawals and account freezing were major actions encountered due to the bear market and shutting down many of the businesses in the industry.
In August, the exchange had a discussion with the SEC for a potential recovery plan. On September 7, the regulatory filed a police report on the global exchange for operating illegally.
In November 2023, Zipmex announced to offer creditors 3.35 cents per dollar for claims. It is a part of restructuring efforts.
Additionally, the Thai SEC is planning to tighten the rules and regulations for crypto to safeguard investors. Creating strict guidelines for crypto advertisements and a wide ban on crypto lending will enhance the operations of businesses in the crypto space.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.