The Securities and Exchange Commission of Thailand (Thai SEC), has sought clarification from cryptocurrency exchange Zipmex on its decision to freeze withdrawals, according to a statement on its website. 

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Fast facts

  • The regulatory authority for Thailand’s capital markets, in a letter dated July 20 issued to Zipmex, has asked the Singapore-based crypto trading company to clarify its decision to suspend Thai baht withdrawals and digital assets.
  • Thai SEC has sought clarification on the amount of customer assets under supervision and evidence of how customer funds were used in the ZipUp program, which allowed users to earn up to 10% interest per annum by depositing digital assets at Zipmex.
  • Zipmex on Wednesday blocked customers from withdrawing their tokens, citing volatile market conditions and financial difficulties of its partners. 
  • Zipmex has said it will prolong the customer withdrawal freeze until Friday, “to prevent any technical issues,” without mentioning a time.
  • Zipmex reportedly lost around US$100 million that it lent to crypto financial service provider Babel Finance after the latter halted withdrawals in June. 

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