Thai Authorities Order Zipmex To Halt Operations

The Thai Securities and Change Fee (SEC) has ordered Zipmex to quickly stop its operations as a digital asset buying and selling and brokerage platform. This directive comes because the market regulator is demanding that the embattled cryptocurrency change make some modifications to its administration construction in addition to enhance its monetary place. 

Zipmex Faces 15-Day Countdown To Implement Regulatory Compliance

In a press release on February 2, the SEC introduced its momentary ban on Zipmex’s operations as a consequence of non-compliance with its regulatory commonplace. The securities watchdog said that it had beforehand issued an order to the change on January 12, demanding it modify the upkeep of its internet liquid capital and modify its enterprise administration construction and personnel with a purpose to promote effectivity and safeguard clients’ pursuits. 

Nonetheless, in a committee assembly on February 1, the SEC concluded that Zipmex was but to adjust to the set regulatory directives. Thus, they’re ordering the buying and selling platform to droop its operations efficient from February 2. Moreover, inside 15 days of the lively ban, Zipmex is remitted to implement the SEC’s orders on its monetary operation and alleged operational deficiencies. 

As well as, the crypto buying and selling firm can be required to design a working system that can shield buyers’ deposited property in opposition to any type of exploitation. After this set interval, Zipmex is anticipated to submit a report on these implementations to the SEC, approval of which is able to result in the change’s resumption of operation.

Zipmex To Lastly Shut Down? 

Following the announcement of the SEC’s newest directive, Zipmex is but to launch an official assertion or response. It’s price noting that the buying and selling platform had been beneath regulatory scrutiny for over a 12 months after submitting for moratorium aid in 2022 in regard to a $97 million debt it owed clients. 

In November 2023, Zipmex proposed to pay its collectors 3.35 cents per greenback as in a debt reimbursement and restructuring plan. In the identical month, the change additionally disabled buying and selling and deposit companies on its platform in November following an order by the SEC regarding the firm’s internet liquid capital.

Notably, in January, the change suggested its clients to withdraw their property from its platform, indicating that the crypto change would possibly shut down its operations within the coming months, a sentiment additional enforced by the SEC’s newest directive. 

The markets regulator has additionally directed that the change stays purposeful for withdrawals always, even amidst the operational ban. Nonetheless, withdrawals off Zipmex can at the moment solely be performed manually, i.e., clients must contact buyer care to provoke any withdrawal course of.

Whole crypto market cap valued at $1.61 trillion on the day by day chart | Supply: TOTAL chart on Tradingview.com

Featured picture from NW Flags, chart from Tradingview