Thailand’s Securities and Exchange Commission (SEC) has ordered cryptocurrency exchange Zipmex to suspend its trading and brokerage services temporarily.
According to an official announcement, Zipmex’s services will remain suspended for 15 days until the firm fixes its financial position and operational issues.
Zipmex Ordered to Halt Services
The SEC revealed that it issued a letter on January 12 ordering Zipmex to amend the maintenance of its net liquid capital, bring it up to the required amount by law, and fix its business management structure.
However, as of January 27, Zipmex had not met the requirements, and during the Commission’s February 1 meeting, the exchange’s efforts to fix the deficiencies were deemed insufficient. As a result, Zipmex must pause its operations until the corrections are implemented and can only resume services when the SEC permits.
While Zipmex’s business operations remain suspended, the exchange must allow customers to withdraw their assets at any time. The SEC said the firm’s management is mandated to comply with customers’ wishes on what to do with their funds.
Zipmex Suspended Thai Operations in November
By the time Zipmex submits the results of the corrections by February 17, the SEC expects that the financial position of the company has been corrected, a system has been created to prevent users’ deposits from being used or profited by any means, and appropriate personnel has been provided to avoid causing damage to customers.
“According to the process specified by law, if the digital asset business operator is unable to comply with the SEC’s orders under Section 35, paragraph two, within the specified period, the SEC may propose that the Minister of Finance consider revoking the order,” stated Anek Yuyuen, Deputy Secretary General and SEC Spokesperson.
The SEC’s order comes two months after Zipmex proposed repaying its creditors 3.35 cents per dollar for their claims as part of its restructuring efforts. The exchange has been troubled since July 2022 after it froze withdrawals amid the contagion from Terra’s collapse.
Zipmex temporarily suspended crypto trading and deposits for Thai customers in November to comply with the SEC’s requirements. The platform’s major creditors are also against the repayment proposal and have requested an independent review of its assets and liabilities.