Thai Regulator Orders Zipmex to Halt Operations

The Securities and Exchange Commission (SEC) of Thailand has mandated the cryptocurrency exchange Zipmex to suspend trading of digital assets and brokerage services.

ก.ล.ต. สั่งการให้ Zipmex ระงับการให้บริการเป็นศูนย์ซื้อขายและนายหน้าซื้อขายสินทรัพย์ดิจิทัลชั่วคราวhttps://t.co/N0cCYvcASM

— ThaiSEC_News (@ThaiSEC_News) February 2, 2024

On January 12, the SEC required the platform to make changes to its structure for maintaining and managing liquid capital. However, at a meeting in early February, the regulator concluded that the identified deficiencies remained unaddressed.

Starting from February 2, Zipmex has 15 days to comply with the order.

“During the suspension, [the exchange] must allow clients to withdraw assets at any time […]. Zipmex can resume normal business operations after receiving permission from the SEC,” the document states.

In July 2022, Zipmex faced liquidity issues following problems with its partners — Babel Finance and Celsius Network. Subsequently, the platform suspended withdrawals, citing an “unforeseeable circumstance” beyond its control.

A few days later, the exchange partially resumed deposits and withdrawals, and later sought court protection from creditors in Singapore.

In the autumn, the Thai SEC filed a police complaint against Zipmex and its co-founder Akalarp Yimwilai.

In December, it was revealed that venture firm V Ventures proposed to acquire 90% of the company’s shares, valued at approximately $100 million.

Zipmex promised to fully resume withdrawals after the deal’s completion. However, in March 2023, it warned of potential liquidation due to V Ventures missing a tranche payment.

Earlier in April, the venture firm offered Zipmex creditors to buy out the exchange’s obligations at a rate of 10–20 cents on the dollar.