Thai SEC Imposes Temporary Services Ban on Crypto Exchange Zipmex
Zipmex is based out of Singapore and has been operating branches in various foreign jurisdictions such as Australia, Indonesia, and Thailand. However, the Securities and Exchange Commission of Thailand has recently asked Zipmex to temporarily suspend its services for 15 days.
The firm noted that if the exchange is able to complete the regulatory requirements within the allotted time, it may be able to resume its services.
The agency issued a notification on 2nd February noting that the trading platform is granted 15 days to remedy its financial position and make up for the operational deficiencies.
SEC has also retained that the firm will only be able to resume regular operations once it has complied with all the regulatory terms that the federal agency has issued before. In the meantime, the users on the platform will be able to make withdrawals.
Zipmex did not Comply with Regulatory Requirements
Anek Yuyuen, the deputy secretary of SEC has talked about if Zipmex is unable to comply with the regulatory requirements. The official noted that the agency will ask the Ministry of Finance to revoke the restoration order.
SEC initiated regulatory action against Zipmex in 2023. The firm came under fire on account of its purchase of V Ventures and remaining operational in Thailand without a regulatory license.
The platform suspended trading services in November, 2023 and retained that the firm was working on complying with the regulatory demands. The firm filed for a debt relief application in 2022 with an outstanding liability of $97 million for its consumers.
Since November, 2023 the trading platform has been attempting to offer an interest of 3.35 cents per dollar owed as part of the restructuring efforts.
Thailand Introduces Infrastructure-based Token Investments
The Thai SEC recently eased the previous restrictions for retail investors about purchasing infrastructure backed tokens. As per the reports, previously investors were only able to purchase 300,000 baht or $8,500 worth of digital tokens at max.
However, after the notification issued on 16th January, 2024 allows investors to make infrastructure-based purchases more freely. The market is known as real estate and infrastructure backed digital token market or REIT.
Introduction of New Digital Currency Wallets
The regulatory relief has arrived at a time when the local market is gaining momentum. This regulation will also pave the way for the creation of a new digital currency wallet for REIT products.
At the same time, SEC is also licensing virtual asset services providing firms in the region. Thailand recently elected real estate magnet Srettha Thavisin as Prime Minister. Thavisin has worked as the head of Thailand’s biggest real estate giant Sansiri and also issued a personalized digital token called SiriHub token.
Meanwhile, the government has also shared plans to distribute 10,000 baht or $274 via a network of digital wallets to promote digital literacy.
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