Zipmex Thailand, a notable player in digital asset exchange, has announced the immediate suspension of trading on its platform. This decision, effective from November 25, 2023, is part of the company’s efforts to align its operations with the standards set by Thailand’s Securities and Exchange Commission (SEC).
Compliance and customer impact
Zipmex Thailand’s move to halt trading activities was communicated to its customers via a Facebook post. The company emphasized its commitment to ensuring that its business operations are compliant with the regulatory criteria established by the SEC. This suspension includes all types of digital asset trading and deposit activities. However, the company has assured its customers that they can continue to withdraw Thai baht and digital assets from their Trade Wallet through the website and mobile application until January 31, 2024.
For digital assets categorized as ‘Trade Only’, customers are required to engage with the Customer Support team to facilitate withdrawals. After January 31, the process for withdrawing assets will be handled exclusively through Customer Support. Customers should be prepared for a withdrawal process that may take between seven to fourteen days and necessitates the submission of documents to verify identity and ownership of accounts. Additionally, the amount eligible for withdrawal is subject to meet the threshold of the withdrawal fee.
Regulatory scrutiny and market competition
The decision by Zipmex Thailand comes in the wake of allegations made by the SEC in September 2022. The cryptocurrency exchange was accused of operating beyond the purview of digital asset business regulations. The SEC highlighted that from May 8 to July 20, 2022, Zipmex Thailand seemingly lacked a system to prevent conflicts of interest effectively and an adequate risk control system. This was particularly pertinent as customers were directed to use the Singapore-based Zipmex Pte, leading to potential conflicts of interest.
In the broader context of Thailand’s cryptocurrency market, this development occurs at a time of intense competition and regulatory focus. Gulf Binance, a joint venture between Gulf Innova and Binance, the world’s largest cryptocurrency exchange platform, recently received SEC approval to start a digital asset business. Expected to begin operations early next year, Gulf Binance will join the competitive landscape that includes Zipmex, among nine other crypto exchanges in Thailand.
Future Outlook
Zipmex’s decision to suspend trading in Thailand reflects the complex and evolving nature of the cryptocurrency market, particularly in the context of regulatory compliance and market competition. As the company navigates through these challenges, the focus remains on maintaining transparency with its customers and adhering to regulatory standards. The upcoming months will be crucial for Zipmex Thailand as it works towards resuming its operations while balancing the interests of its users and regulatory requirements.