Thai Regulator Orders Zipmex to Suspend Digital Asset Trading and Brokerage Services

Thailand’s Securities and Exchange Commission (SEC) has ordered crypto exchange Zipmex to suspend its digital asset trading and brokerage services.

The regulator had ordered the troubled crypto exchange to amend its liquid capital maintenance and management structure on Jan. 12. However, as of Feb. 1, the SEC was unsatisfied that Zipmex had met these requirements.

Singapore-based Zipmex now has 15 days to correct its financial position and create a system to prevent the improper use of customer funds, according to an announcement by the SEC on Friday.

“In this regard, Zipmex shall submit the results of the correction to the SEC within 15 days from February 2, 2024,” the SEC announced. “Zipmex will be able to resume normal business operations upon receiving permission from the SEC.”

Zipmex said that it had already discontinued trading and deposit services, and had encouraged its customers to withdraw their assets, as per announcements on its website in December and January.

The company did not immediately respond to CoinDesk’s request for comment.

Zipmex froze withdrawals in July 2022, having been caught in the contagion of the collapse of the Terra ecosystem and subsequent folding of crypto lenders. Zipmex filed for creditor protection as it sought to raise capital to cover its losses.

In November last year, it was reported that Zipmex had proposed paying creditors 3.35 cents on the dollar as part of its restructuring plan. However, the proposals were pushed back by major creditors who wanted to review the exchange’s assets and liabilities.

Read More: Celsius to Distribute $3B Crypto to Creditors as Firm Emerges From Bankruptcy