Leading cryptocurrency exchange Zipmex has announced it is suspending all digital asset trading and deposits in Thailand in an effort to align with regulatory requirements from the Securities and Exchange Commission (SEC).
In a statement on Saturday, November 25th, Zipmex said it was temporarily halting operations to ensure compliance with the criteria set forth by the Thai SEC. The suspension of trading and deposits is effective immediately from 1:00pm local time onwards.
Additionally, customers will need to directly contact Zipmex customer support for any withdrawals after January 31st, 2024, when the company will suspend withdrawals through its website and mobile apps.
The surprise move follows months of regulatory scrutiny and reported liquidity issues for Zipmex in Thailand.
Back in September, the SEC filed a police complaint alleging that Zipmex and its co-founder Akalarp Yimwilai were noncompliant with the country’s Digital Asset Business Act.
Earlier this year, the exchange had also delayed customer withdrawals, citing efforts to “maximize returns.” This led to Zipmex having to request an extension on its debt moratorium in Singapore amid liquidity struggles.
Meanwhile, the Thai SEC opened a new investigation into Zipmex on January 10th for potentially operating as an unauthorized digital asset fund manager. The commission gave the exchange just one day to confirm or deny the allegations.
It remains unclear precisely why Zipmex has opted to halt trading operations in Thailand. However, the statement emphasizes the move allows the company to ensure regulatory alignment and compliance at a time of intense scrutiny from the Thai SEC.
With one of the largest exchanges now out of commission, the development is likely to impact Thailand’s burgeoning cryptocurrency sector. Other exchanges continue operating as normal. Still, for how long remains uncertain amidst the SEC’s campaign to regulate digital asset companies.