Zipmex interrupts trading activity in Thailand

27 November 2023


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SINGAPORE - Cryptocurrency exchange Zipmex Thailand has thrown investors into disarray by announcing an immediate suspension of digital asset trading until early next year. On November 25, 2023 at 1:00 PM, the Company temporarily suspended digital asset trading and deposits. The decision was made in response to the stringent criteria imposed by the Thai Securities and Exchange Commission, as stated by the platform through a post on Facebook on Saturday afternoon.

In an official post we can read: “Zipmex Limited wishes to ensure the proper and compliant conduct of its business operations in accordance with the stability criteria of the Securities and Exchange Commission (SEC) of Thailand.” However, customers will still be able to withdraw Thai baht and digital assets from their Trade Wallet via the website and mobile app until January 31, 2024.


As The Paypers reported: "The suspension follows several difficulties for Zipmex, with the most recent one being in April 2023 when the company delayed paying its customers due to an attempt to increase returns for them. At that time, Zipmex requested an additional extension that would enable a longer moratorium on its debt in Singapore amid the firm’s liquidity issues. In January 2023 the company was the subject of an investigation by SEC Thailand due to a potential breach of local regulations for digital asset service providers. The Thai SEC requested Zipmex to clarify whether it was operating as a digital asset fund manager without permission in the region and, if true, the company was obliged to obtain a permit before conducting business in Thailand. Investigations into the activity of the exchange had been going on for an extended period of time".

So what we know so far is that the exchange company, based in Singapore and operating in Thailand, Australia and Indonesia, is currently subject to sanctions by the Thai SEC and this began several months ago. The sanctions stem from the improper use of a digital asset custody service and steering customers to another exchange, Singapore's Zipmex Pte, causing a potential conflict of interest.

Zipmex 's crisis

Lately the platform has been hit by a number of difficulties over time. Last year, it suspended withdrawals due to market volatility and liquidity crisis resulting from exposure to Babel Finance. Zipmex has also run into problems repaying creditors following losses related to exposure to cryptocurrency lenders such as Babel Finance and Genesis. Zipmex's $100 million takeover attempt collapsed earlier this year when the buyer, V Ventures said, withdrew its takeover offer. Despite attempts to restructure and sell a majority stake, the Thai Securities and Exchange Commission's investigation into alleged regulatory violations in the offering of digital products continued to cast a shadow over the exchange.

SOURCES: Crypto News, The Paypers

Photo credit: Steve Johnson

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