<p>Troubled cryptocurrency exchange Zipmex Thailand has recently announced the temporary suspension of digital asset trading until early next year.</p><h2 id="header-0">Trading and deposits suspended</h2><p>The decision, outlined by the firm in a <a href="https://www.facebook.com/photo.php?fbid&#61;328159793256575&amp;set&#61;a.240342025371686&amp;type&#61;3&amp;_rdr&#61;" rel="noopener noreferrer nofollow">Facebook post</a> on Saturday, is attributed to the platform’s efforts in ensuring full compliance with the standards set by Thailand’s Securities and Exchange Commission (SEC).</p><p>In the Facebook post, Zipmex Limited addressed its customers, stating:</p><p>“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 (SEC).”</p><p>The suspension of digital asset trading and deposits of all types became effective from Nov. 25.</p><h2 id="header-1">Withdrawals remain open</h2><p>Despite the suspension, customers will retain the ability to withdraw Thai baht and digital assets from their Trade Wallet through the website and mobile application until Jan. 31, 2024. However, for digital assets categorized as “Trade Only,” customers are instructed to contact Customer Support for withdrawal. Beyond Jan. 31, 2024, when the withdrawal feature through the website and mobile application is suspended, customers will need to seek assistance from Customer Support.</p><p>Zipmex Thailand also emphasized that the withdrawal process for digital assets may take between seven to 14 days, requiring customers to provide supporting documents for identity and account ownership verification.</p><p>As a cryptocurrency exchange headquartered in Singapore and operating in multiple countries, including Thailand, Australia and Indonesia, Zipmex has already fallen foul of Thailand’s SEC. Earlier this year, it was hit with<a href="https://www.bangkokpost.com/business/2557244/zipmex-seeks-to-discuss-fines-with-sec" rel="noopener noreferrer nofollow"> penalties</a> related to allegations of improper use of a digital asset custodian service and the redirection of customers to the Singapore-based exchange, Zipmex Pte, creating a conflict of interest.</p><h2 id="header-2">Financial difficulties</h2><p>The exchange has faced financial challenges, including difficulties in repaying creditors after losses incurred from exposure to crypto lenders Babel Finance and Genesis in 2022. A planned $100 million buyout earlier in the year fell through when the buyer, reportedly V Ventures, withdrew from the purchase.</p><p>Zipmex’s troubles date back to last summer when the exchange halted withdrawals due to volatile market conditions and a liquidity crunch resulting from exposure to the troubled crypto lender Babel Finance. Despite facing financial difficulties, the exchange expressed its commitment to maintaining the integrity of its platform.</p><p>In August of the same year, Bloomberg reported that Zipmex intended to meet with potential investors and Thailand’s financial regulator to discuss a recovery plan. By November, the platform was in advanced discussions with venture capital fund V Ventures for the sale of a majority stake.</p><p>Earlier this year, the Thai Securities and Exchange Commission announced an investigation into whether Zipmex breached local rules in its offering of certain digital-asset products. In April, the company <a href="https://medium.com/&#64;coinness.gl/zipmex-files-for-additional-time-to-effect-restructuring-plan-9c3f388ad206" rel="noopener noreferrer nofollow">filed</a> a request to extend the moratorium period to enable the firm to work towards restructuring. Later that month, it <a href="https://medium.com/&#64;coinness.gl/investor-deal-falls-through-for-zipmex-e559740302e4" rel="noopener noreferrer nofollow">appeared</a> that the V Ventures investment deal had fallen through. By July, the beleaguered firm had <a href="https://www.businesstimes.com.sg/startups-tech/startups/zipmex-sues-investor-proposes-new-scheme-after-us100-million-deal-fails" rel="noopener noreferrer nofollow">sued</a> the investor for breach of contract.</p><p>The ongoing challenges faced by Zipmex underscore the complex landscape and regulatory scrutiny surrounding cryptocurrency exchanges in various jurisdictions.</p>

Zipmex Thailand halts crypto trading citing SEC compliance

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