Thai Crypto Exchange Zipmex Pauses Withdrawals On Its Platform

Zipmex, a crypto exchange based in Thailand, has put a stop to withdrawals on its venue after the occurrence of some difficult circumstances. Nonetheless, the reports of any trouble have been refuted by Marcus Lim – the co-founder and CEO of Zipmex – as he categorized them as just rumors after the failure of the Thai exchange’s acquisition by Coinbase.

Coinbase’s Offer for the Acquisition of Zipmex

Formerly, in the 1st quarter of 2022, Coinbase had offered Zipmex to acquire it. On 9th June, the acquisition declined. Rather a strategic investment was made by Coinbase into the firm – without disclosing the total amount. Lim stated that while Coinbase stands at the position of a great partner, however, it can presently be called an investor. He elaborated that the bear market became the reason for Coinbase’s change of plans to leave the idea of acquisition.

Reports point out that Zipmex is operating on a Series B+ fundraising to potentially take it to nearly $400M. Zipmex is known as an organization carrying out compliant activities in Australia, Singapore, Indonesia, and Thailand. In August previous year, a significant increase was witnessed in the consumer base of Zipmex as it reached 200,000 whereas more than $1B has been reported in gross transfer volume since it was launched in 2019’s latter period.

Zipmex in Trouble?

As per the press releases of Zipmex, its Thailand-based sub-branch possesses a license for the exchange of digital assets along with a brokerage license approved by Thailand’s Ministry of Finance, while the Securities and Exchange Commission has the responsibility to regulate the group. Nevertheless, a source (well-acquainted with Zipmex) elaborated that the exchange could be undergoing some difficult phases in advance of freezing the funds of the customers.

The anonymous source disclosed that the exchange has an exchange license in Thailand whereas in Singapore it has exempt status. Zipmex is prohibited from touching the consumer funds nonetheless the exchange has a product named zip-up with which the clients can effectively shift their funds in the case of the Singapore-based branch to acquire yield, the source revealed.

Babel Finance (an asset manager based in Hong Kong) was given funds of up to $100 million to create yield. After that, in June, Babel Finance stopped terminated withdrawals, because of unconventional liquidity pressures, and presently it is at the hazard of default.

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