Thailand’s Securities and Exchange Commission (SEC) has instructed cryptocurrency exchange Zipmex to halt its digital asset trading and brokerage services, Bloomberg said in a report.
The regulator initially directed the troubled exchange to rectify its liquid capital maintenance and management structure on January 12. However, as of February 1, the SEC remained dissatisfied with Zipmex’s compliance with these requirements.
Singapore-based Zipmex is now under a stringent 15-day deadline to address its financial standing and establish a system preventing the improper use of customer funds. The regulatory announcement on Friday stated, “In this regard, Zipmex shall submit the results of the correction to the SEC within 15 days from February 2, 2024. Zipmex will be able to resume normal business operations upon receiving permission from the SEC.”
Zipmex, in response to the SEC’s directive, claimed to have already ceased trading and deposit services. Furthermore, the company urged its customers to withdraw their assets, aligning with prior announcements on its website made in December and January. As of now, Zipmex has not provided immediate comments in response to CoinDesk’s request.
The situation for Zipmex has been challenging, with withdrawals frozen since July 2022. The exchange found itself entangled in the aftermath of the Terra ecosystem’s collapse and the subsequent folding of crypto lenders. Seeking capital to cover its losses, Zipmex filed for creditor protection in July.
Reports from November last year suggested that Zipmex proposed paying creditors 3.35 cents on the dollar as part of its restructuring plan. However, significant creditors deferred the proposals, expressing the need to review the exchange’s assets and liabilities.