Recent news from Thailand says that a popular cryptocurrency exchange Zipmex indicated that it would be suspending trading in Thailand, sending shockwaves through the cryptocurrency community. The company made this decision following a string of difficulties, such as postponed client payments and increased scrutiny from the Thai Securities and Exchange Commission (SEC).
A report dated April 18 claims that Zipmex made the usual decision to defer customer payments. As of press time, the details of the decision are still unknown, but observations reveal that Zipmex users are unhappy about this decision, which casts doubt on the platform’s viability in the Thai market.
Zipmex said that this regulatory scrutiny was a major turning point because it increased the level of scrutiny over the platform’s activities within the country. Zipmex has issued a formal statement about the recent development amid an ongoing investigation into the case. The company’s statement instructed its customers to contact the company directly if they wish to withdraw their funds.
Zipmex’s Decision Linked To The Rising Case Of Regulatory Obstacles
Experts’ comments have started coming in concerning the recent development. Kenne Michael wrote an article on CoinXposure, explaining that Zipmex’s move to suspend trading activities in Thailand is a calculated reaction to the growing regulatory obstacles.
Although the delay in client payments was justified as an attempt to maximize user returns, it is possible that it was a tactic to manage the financial fallout from regulatory investigations. Michael added that this action might also be an attempt to rectify any possible irregularities or financial gaps that were found during the SEC’s investigation.
The current situation has also been described as the SEC’s larger initiative to create a strong legal structure for cryptocurrency exchanges in Thailand. In 2019, the Thai government, through the Ministry of Finance, approved licenses to four cryptocurrency exchange companies. The development automatically positioned Thailand as one of the top cryptocurrency industries in the Asian continent.
Zipmex Issues Official Statement, As SEC Fumes
The authorities also said that the exchange failed to align with Thailand’s Digital Assets Act by refusing to publish data relating to its cryptocurrency transactions and digital wallets. Further investigation into the recent development has it that on the 18th of April, Zipmex postponed its customer’s payments in a bid to increase its customer’s return on investment.
Zipmex is requesting an extension to enable it to manage its debts in Singapore amid its struggle with liquidity properly. Recall that the Thai SEC launched a fresh investigation into the Zipmex exchange on the 10th of January for going against the new regulations.
In a similar development, Gulf Binance, which is in joint partnership with Binance and Gulf Innova, is working on starting its digital assets and cryptocurrency business in Thailand soon. This recent development will add to the 9 already existing cryptocurrency exchanges in Thailand, hence further intensifying the Thai cryptocurrency industry.
In July, 2023, SEC made an amendment, ruling specific investment advisers rendering service via the internet, urging them to register with the he commission. Thai SEC has in April, 2022 banned all forms of payments through cryptocurrencies, pointing out some security concerns.
The recent legal reform is said to enhance investor’s protection, introduce a balance between cryptocurrency development and guaranteeing the general safety of digital assets, making sure it’s not used for counter-development activities.