Thai Regulator Halts Zipmex's Crypto Trading & Brokerage Services

• Thailand's SEC Orders a Temporary Suspension on Zipmex's Crypto-related Services
• Corrective Measures Required by Zipmex
• Trading Suspension and Previous Financial Difficulties
• Zipmex's Restructuring Plan and Creditors' Response
• Celsius's Recovery from Bankruptcy

Thailand's SEC Orders a Temporary Suspension on Zipmex's Crypto-related Services

Thai regulatory body, the Securities and Exchange Commission (SEC), has directed crypto exchange platform Zipmex to temporarily halt its digital asset trading and broker services. This order came after Zipmex was previously asked to update its liquid capital maintenance and management structure on January 12. As of February 1, the SEC noted that Zipmex had failed to fulfill these requirements.

Corrective Measures Required by Zipmex

The SEC has granted the Singapore-based cryptocurrency exchange a 15-day period to correct its financial status and establish a mechanism to mitigate misuse of client funds. The regulator stated, In this respect, Zipmex should present the findings of this correction to the SEC within 15 days from February 2, 2024." Following approval from the SEC, Zipmex can then recommence its usual business operations.

Trading Suspension and Previous Financial Difficulties

Zipmex has already ceased trading and deposit services, urging its customers to withdraw their assets, as stated in its December and January website notifications. The crypto exchange experienced significant financial difficulties in 2022, with the fallout from the collapse of the Terra ecosystem and resulting failure of crypto lenders. Consequently, Zipmex inhibited withdrawal services in July 2022 and sought creditor protection in an effort to procure capital to offset its losses.

Zipmex's Restructuring Plan and Creditors' Response

In November, reports surfaced that Zipmex had suggested paying its creditors 3.35 cents per dollar as part of its restructuring plan. However, key creditors rejected the plans, expressing a desire to scrutinize the exchange's assets and liabilities further.

Celsius's Recovery from Bankruptcy

Other crypto-based firms have successfully navigated financial turmoil, such as Celsius, which recently emerged from bankruptcy by disbursing $3B in crypto to its creditors.

Edited by Jonathan Stoker