Thailand's Securities and Exchange Commission (SEC) has issued an order to cryptocurrency exchange Zipmex, instructing the temporary suspension of its digital asset trading and brokerage services. In an announcement made on February 2, the SEC stipulated a 15-day period for Zipmex to address "deficiencies in its financial condition and operations," as outlined in a previous directive from the financial regulator. Following compliance with the regulatory requirements within the specified time frame, cryptocurrency exchanges will be granted permission to resume normal operations. During this period, it is imperative that users have the ability to withdraw their funds.
SEC Deputy Secretary Anek Yuyuen emphasized the necessity for digital asset business operators to adhere to the prescribed legal procedures. Failure to comply with the SEC's order within the stipulated timeframe may prompt the SEC to recommend the Secretary of the Treasury consider revoking the order, according to Yuyuen. Zipmex has been a subject of regulatory scrutiny by the SEC since the 2023 crypto market downturn. The exchange is reportedly facing investigations related to the acquisition by V Ventures and the possibility of operating in Thailand without regulatory approval. Zipmex took the initiative to suspend trading in November 2023, citing the need to comply with regulations.
The Singapore-based exchange applied for debt relief in 2022, reporting outstanding debts of $97 million owed to its customers. As of November 2023, Zipmex reportedly expressed its commitment to compensating creditors with 3.35 cents on the dollar for initial claims, forming a part of its ongoing restructuring efforts.
