#Zipmex #ThailandSEC #DigitalAssets #CryptocurrencyRegulation #FinancialCompliance #CryptoExchange #DigitalAssetTrading #RegulatoryChallenges
Thailand’s securities regulator, the Securities and Exchange Commission (SEC), has taken a decisive step to suspend digital asset trading and brokerage services offered by Zipmex Company Limited temporarily. This move comes as a direct consequence of Zipmex’s inability to rectify financial and operational discrepancies highlighted by the SEC, despite being granted a 15-day period starting from January 12, 2024, for remediation. The deliberations leading to this suspension unfolded in an SEC Committee meeting on February 1, 2024, reflecting the regulator’s rising concerns over Zipmex’s failure in maintaining necessary net liquid capital, structuring its business adequately, and averting offenses that could jeopardize customer assets. Effective from February 2, 2024, the suspension mandates Zipmex to undertake a series of corrective actions aimed at revamping its financial standings and operational alignment with regulatory prerequisites.
The SEC’s warning extends beyond Zipmex, signaling to digital asset operators the implications of non-compliance with stipulated regulations. Deputy Secretary General Anek Yuyuen underscored the potential for the SEC to recommend revocation of operational credentials should a digital asset business fail to align with SEC orders, delineated under the Digital Assets Decree. Zipmex’s mandated corrective measures entail not only a restructuring of its financial foundation in adherence to regulatory guidelines but also a reassessment of its management structure and operational protocols to safeguard compliance and customer asset security. Throughout the suspension, Zipmex is obligated to facilitate uninterrupted customer withdrawals and expedite the return of funds and digital assets. This regulatory challenge emerges amid Zipmex’s strategic engagements with potential investors and regulators across its operational footprint in the Asia Pacific, aiming to secure a recovery path amidst the liquidity crisis exacerbated by its exposure to the troubled crypto-lending platform, Babel Finance.
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