Thai Regulator Vetoed: Zipmex Operation Suspended

The Zipmex cryptocurrency exchange has faced a number of problems that have caused dissatisfaction with the regulator, the Securities and Exchange Commission of Thailand (SEC). In this regard, the SEC demanded that the platform stop trading digital assets and providing brokerage services.

On January 12, the SEC indicated to Zipmex the need to make changes to the system of maintaining and managing liquid funds. However, following a subsequent meeting in February, it was found that the platform had not eliminated the identified shortcomings. As a result, Zipmex received an order to correct the situation within 15 days, starting on February 2.

Zipmex's problems began in July 2022, when the exchange faced a lack of liquidity as a result of crisis situations at its partners – Babel Finance and Celsius Network. After that, the platform suspended the withdrawal of customer funds, explaining this by force majeure circumstances. After some time, Zipmex partially restored the deposit and withdrawal operations, and then appealed to the Singapore court in order to provide protection from creditors.

In addition, the Thai SEC filed a police report against Zipmex and its co-founder Akalarp Yimvilaya in the fall. At the end of the same year, it became known about the offer of the venture capital firm V Ventures to buy back 90% of the company's shares for an amount close to $ 100 million.

Zipmex said it would resume withdrawing funds after making a deal with V Ventures. However, in March 2023, the exchange warned about the risk of its liquidation, since V Ventures did not fulfill the obligation to make a payment on the tranche. In April, the venture capital firm offered Zipmex creditors to buy back the platform's debts, offering 10-20 cents for every dollar owed.

The situation with Zipmex is a reminder of the risks associated with investing in cryptocurrencies and the importance of strict compliance with regulatory requirements in the digital asset industry.