Crypto exchange Zipmex Thailand has momentarily suspended trading and new deposits on its platform, citing non-compliance with Thai SEC’s regulations.
Meanwhile, the statement reveals that users can continue withdrawing until 31 January 2024, after which customers should reach out to support to process withdrawals.
Zipmex’s decision to halt its operation in Thailand follows multiple challenges that the exchange has experienced lately. Previously, the trading firm delayed paying its users amid liquidity problems.
The exchange struggled to pay creditors as its connection with cryptocurrency lenders Genesis and Babel Finance saw it losing funds. Also, Zipmex lost a $100M buyout early in 2023 after the buyer suspended the deal.
Zipmex was under the Thailand Securities & Exchange Commission’s radar on 10 January for breaching local regulations. On 11 January, news wires revealed that the trading company had a day to deny or admit whether it has been running as an unlicensed crypto fund manager.
Thailand Securities & Exchange Commission has investigated Zipmex since last year. The regulator alleges that the firm fails to adhere to local rules such as the Digital Assets Act.
Zipmex Thailand’s case shows the challenges that crypto players face. Regulatory woes and financial challenges continue to affect investors and exchanges. For instance, Wallet of Satoshi exited the United States due to unclear regulations.
Meanwhile, companies like Zipmex must adapt to the complex regulatory frameworks and market forces. These developments could have significant effects on the crypto market in Thailand.
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