Image Source: Zipmex
Crypto exchange Zipmex Thailand has announced the immediate suspension of digital asset trading until early next year.
The decision was made to ensure proper compliance with the criteria set by Thailand’s Securities and Exchange Commission (SEC), the platform wrote in a Facebook post on Saturday afternoon.
“Dear customers, Zipmex Limited would like to ensure the proper and compliant conduct of the company’s business operations in accordance with the criteria set by Thailand’s Securities and Exchange Commission (SEC),” the post read.
“Therefore, it is necessary for the company to temporarily suspend digital asset trading and deposit of all types, effective from Nov 25, 2023, at 1pm onwards.”
However, customers will still be able to withdraw Thai baht and digital assets from their Trade Wallet through the website and mobile application until January 31, 2024.
For digital assets categorized as ‘Trade Only,’ customers must contact Customer Support for withdrawal.
After January 31, 2024, when the company suspends the withdrawal of assets through the website and mobile application, customers will need to reach out to Customer Support for further assistance.
Withdrawal Process Could Take Up to 14 Days
Zipmex Thailand mentioned that the withdrawal process for digital assets may take between seven to 14 days, and customers must provide supporting documents to verify their identity and account ownership.
Headquartered in Singapore and operating in Thailand, Australia, and Indonesia, the exchange currently faces penalties from Thailand’s SEC.
The penalties are related to allegations of Zipmex Thailand’s improper use of a digital asset custodian service and the funneling of customers to the Singapore-based exchange, Zipmex Pte, which created a conflict of interest.
Furthermore, Zipmex has encountered difficulties in repaying creditors after suffering losses from exposure to crypto lenders Babel Finance and Genesis.
A planned $100 million buyout of Zipmex earlier this year fell through when the buyer, reportedly V Ventures, withdrew from the purchase.
How Zipmex Collapsed?
Last summer, the Asian crypto exchange announced that it is halting withdrawals due to volatile market conditions.
The platform faced a liquidity crunch following exposure to the troubled crypto lender Babel Finance.
“Due to a combination of circumstances beyond our control, including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice,” the exchange said on Twitter at the time.
In August last year, Bloomberg reported that Zipmex plans to meet with potential investors and Thailand’s financial regulator to discuss a recovery plan.
By November, the platform was in advanced discussions with venture capital fund V Ventures over the sale of a majority stake.
Earlier this year, the Thai Securities and Exchange Commission said it was investigating whether Zipmex breached local rules in its offer of certain digital-asset products.
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