Zipmex, the Singapore-based crypto exchange, has been instructed to halt its operations in Thailand due to compliance issues with local regulations. The Thailand Securities and Exchange Commission (SEC) has raised concerns about Zipmex’s inadequate business practices, leading to a temporary suspension of its services in the country.

Compliance Concerns and Regulatory Action

The Thailand SEC has directed Zipmex to address its financial positions and operational deficiencies to comply with local laws. Despite previous orders to standardize management structures and capital maintenance, Zipmex failed to meet the SEC’s requirements within the stipulated deadline.

One of the key issues raised by the regulator was Zipmex’s inability to maintain the required net liquid capital as per Thailand’s financial policies. In response, Zipmex has been given 15 days to implement corrective measures, including demonstrating internal expertise and establishing safeguards against the misuse of customer deposits.

Temporary Suspension and Future Plans

As a result of the compliance issues, Zipmex has temporarily suspended all trading operations in Thailand. However, users are still able to withdraw their funds from the platform during this period. The suspension comes after a series of events, including the freezing of withdrawals in July 2022 and Zipmex’s subsequent filing for court protection.

Zipmex has put forth a reorganization plan to address creditor payouts, offering approximately 30 cents on the dollar to its creditors. Despite facing opposition from major stakeholders, Zipmex is working towards resolving its compliance issues and hopes to resume normal business operations in Thailand soon.

“Zipmex is committed to addressing the regulatory concerns raised by the Thailand SEC and is working diligently to rectify the compliance issues to resume operations in the country,” said a spokesperson for the crypto exchange.

For more updates on the situation with Zipmex and other crypto news, continue to explore Global Crypto News.

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