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Zipmex Thailand suspends trading amid regulatory compliance efforts

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TL;DR

  • Zipmex Thailand halts all trading and deposits from November 25, 2023, for regulatory compliance.
  • Withdrawals of Thai baht and digital assets are available until January 31, 2024; some require contacting customer support.
  • The suspension follows regulatory challenges and financial issues for Zipmex, amid rising competition in Thailand’s crypto market.

Zipmex Thailand, a prominent digital asset exchange, immediately halted all trading activities on its platform. This suspension, effective from November 25, 2023, marks a critical juncture for the exchange and its users, drawing attention to the regulatory environment surrounding digital assets in the region.

Compliance with regulatory standards

Zipmex Thailand’s decision to pause trading was communicated through a Facebook post on Saturday afternoon. The company stated, “Dear customers, Zipmex Limited would like to ensure the proper and compliant conduct of the company’s business operations in accordance with the criteria set by Thailand’s Securities and Exchange Commission.” 

It is important to know that this suspension includes all digital asset trading and deposits, highlighting the company’s commitment to align with regulatory standards.

The move follows scrutiny from Thailand’s Securities and Exchange Commission (SEC), which previously accused Zipmex of operating outside the digital asset business regulations. In particular, the SEC noted issues with Zipmex not having a system in place to prevent conflicts of interest and inadequate risk control systems in its operations between May and July 2022.

Withdrawal processes and customer impact

While trading is halted, Zipmex Thailand has assured that customers can withdraw Thai baht and digital assets from their Trade Wallets via the website and mobile application until January 31, 2024. For ‘Trade Only’ digital assets, customers are required to contact Customer Support for withdrawals. The process for withdrawing digital assets may take between seven to fourteen days, and customers need to prepare supporting documents to confirm identity and prove ownership of their accounts.

Zipmex struggles

This suspension comes amid a challenging period for Zipmex, which has faced allegations of misuse of a digital asset custodian service and of directing customers to its Singapore-based exchange, Zipmex Pte. The company also struggled financially following exposure to crypto lenders Babel Finance and Genesis, leading to difficulties in repaying creditors.

The suspension of Zipmex Thailand’s trading activities occurs in a competitive digital asset market in Thailand. Notably, Gulf Binance, a joint venture between Gulf Innova and Binance, recently received SEC approval to commence digital asset business operations. As one of the nine other crypto exchanges in Thailand, Gulf Binance is poised to begin trading in early 2024, intensifying the competition in the market. The coming months will be crucial for Zipmex Thailand as it works towards resuming operations.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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