The Thai Securities and Exchange Commission (SEC) has ordered Zipmex to temporarily cease its operations as a digital asset trading and brokerage platform. This directive comes as the market regulator is demanding that the embattled cryptocurrency exchange make some changes to its management structure as well as improve its financial position.
Zipmex Faces 15-Day Countdown To Implement Regulatory Compliance
In a statement on February 2, the SEC announced its temporary ban on Zipmex’s operations due to non-compliance with its regulatory standard. The securities watchdog stated that it had previously issued an order to the exchange on January 12, demanding it adjust the maintenance of its net liquid capital and modify its business administration structure and personnel in order to promote efficiency and safeguard customers’ interests.
However, in a committee meeting on February 1, the SEC concluded that Zipmex was yet to comply with the set regulatory directives. Thus, they are ordering the trading platform to suspend its operations effective from February 2. Furthermore, within 15 days of the active ban, Zipmex is mandated to implement the SEC’s orders on its financial operation and alleged operational deficiencies.
In addition, the crypto trading company is also required to design a working system that will protect investors’ deposited assets against any form of exploitation. After this set period, Zipmex is expected to submit a report on these implementations to the SEC, approval of which will lead to the exchange’s resumption of operation.
Zipmex To Finally Shut Down?
Following the announcement of the SEC’s latest directive, Zipmex is yet to release an official statement or response. It is worth noting that the trading platform had been under regulatory scrutiny for over a year after filing for moratorium relief in 2022 in regard to a $97 million debt it owed customers.
In November 2023, Zipmex proposed to pay its creditors 3.35 cents per dollar as in a debt repayment and restructuring plan. In the same month, the exchange also disabled trading and deposit services on its platform in November following an order by the SEC in regards to the company’s net liquid capital.
Notably, in January, the exchange advised its customers to withdraw their assets from its platform, indicating that the crypto exchange might shut down its operations in the coming months, a sentiment further enforced by the SEC’s latest directive.
The markets regulator has also directed that the exchange remains functional for withdrawals at all times, even amidst the operational ban. However, withdrawals off Zipmex can currently only be conducted manually, i.e., customers will have to contact customer care to initiate any withdrawal process.
Total crypto market cap valued at $1.61 trillion on the daily chart | Source: TOTAL chart on Tradingview.com
Featured image from NW Flags, chart from Tradingview
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Semilore Faleti
Semilore Faleti works as a crypto-journalist at Bitconist, providing the latest updates on blockchain developments, crypto regulations, and the DeFi ecosystem. He is a strong crypto enthusiast passionate about covering the growing footprint of blockchain technology in the financial world.
