Zipmex Suspends Crypto Trading and Brokerage in Thailand

Zipmex has 15 days to comply with certain orders before resuming business in Thailand.

by Brian Danga. Fact checked by: Ciaran Lawler, Editor: Stefan Trapp

Published: February 2, 2024 │ 4:10 PM GMT

Dead body floating on the sea with a Thai flag for sky. — *Created by Gabor Kovacs from DailyCoin*

Crypto exchange Zipmex has landed in trouble.
The exchange might need to reconsider its Thailand business structure.
Thai regulator expressed concerns about the exchange flouting orders.

The Thailand Securities and Exchange Commission (SEC) has ordered cryptocurrency exchange Zipmex to “temporarily” suspend its digital asset trading and brokerage services in the country.

The development came after the exchange failed to amend its net liquid capital maintenance and business management structure “to be appropriate and efficient,” as directed by the securities watchdog on January 12.

Thailand SEC Orders Suspension of Zipmex Trading Services

According to a press release dated February 2, in its meeting on Thursday, the SEC committee concluded “that Zipmex was still unable to correct its financial position and operational deficiencies.”

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“The Police Commissioner therefore relied on his authority under Section 35, paragraph two, of the Digital Assets Decree. There was a resolution ordering Zipmex to suspend its digital asset trading center business. and digital asset brokerage since February 2, 2024.” The statement read.

The regulator has mandated that Zipmex fulfill three conditions during the suspension period: correcting its financial position, modifying the company’s management structure and personnel, and creating a system to prevent misappropriation of customers’ deposits.

Further, the regulator mandated Zipmex to “provide customers with the ability to withdraw assets at any time” during the suspension period. The exchange has 15 days to comply with the conditions, after which it may receive the regulator’s permission to resume normal business operations.

In the meantime, Deputy Secretary General and SEC Spokesperson Anek Yuyuen reminded crypto companies of the SEC’s power to advise the Minister of Finance to revoke their licenses if they cannot comply with the regulator’s orders under the Digital Assets Decree.