Thailand’s Securities and Exchange Commission (SEC) has ordered the country’s crypto exchange Zipmex to temporarily suspend operations. This decision came after the market regulator required the exchange to make some changes to its management structure and improve its financial position.
Thailand temporarily closes crypto exchanges
Zipmex has been under close scrutiny for some time after the company asked for help paying off a $97 million debt to its customers in 2022. In November 2023, Zipmex proposed paying its creditors just 3.35 cents on the dollar as part of a plan to pay off its debts and restructure its business.
In January, the crypto exchange recommended its customers withdraw their funds from the platform. This suggests that the exchange may have been considering ceasing operations. The recent SEC appointment underscores this idea.
On January 12, the Thai SEC told Zipmex that they needed to manage their money better and organize their business differently to protect customers and be more efficient. After a meeting on February 1, the government agency concluded that the exchange did not comply with the established guidelines. As a result, the SEC announced on February 2 that Zipmex must temporarily cease operations.
Within 15 days of Zipmex’s temporary closure, they must follow the Thai SEC’s instructions to resolve monetary issues. Zipmex also needs to develop a system to protect investors from misuse of their money. After this time, they must submit a report to the SEC, and if the agency approves it, they can resume work.
The SEC has also mandated that Zipmex must always be available for withdrawals, even if regular operations have been suspended. However, currently customers can only request withdrawals manually by contacting customer service.