Thai SEC orders Zipmex to suspend services temporarily

Thai SEC orders Zipmex to suspend services temporarily

According to the regulator, the crypto exchange could resume normal operations should it meet SEC requirements within 15 days.

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

In a Feb. 2 announcement, the SEC said Zipmex had 15 days to “correct its financial position and operational deficiencies” as previously ordered by the financial regulator. According to the SEC, the crypto exchange will be allowed to resume normal operations upon meeting the regulator’s requirements, during which time users must be able to withdraw funds.

“According to the process specified by law. If the digital asset business operator is unable to comply with the SEC’s orders [...] within the specified period, the SEC may propose that the Minister of Finance consider revoking the order,” said SEC Deputy Secretary General Anek Yuyuen.

Zipmex has been under regulatory scrutiny from the SEC since 2023, following the crypto market downturn. The exchange reportedly faced a probe over an acquisition by V Ventures and whether it had been operating in Thailand without regulatory approval. Zipmex suspended trading in November 2023, saying that the move was an attempt to comply with regulations.

The Singapore-based exchange filed for debt relief in 2022, reportedly owing customers $97 million. As of November 2023, Zipmex reportedly said it was willing to offer creditors 3.35 cents per dollar for initial claims as part of its restructuring efforts.