Singapore-based Zipmex Exchange Ceases All Withdrawals
Launched in 2018, Zipmex is a crypto asset exchange with operations in Australia, Singapore, Indonesia, and Thailand, tweeted stating that the company “would be pausing withdrawals until further notice.” This Singapore-based crypto exchange has become the latest company to stop clients to take direct custody of their coins on its platform.
Citing volatile market conditions and financial difficulties of their key business partners, Zipmex has frozen all transactions. It is known that the company has lent $100 million in funds to the assailed Balabel Finance who froze its platform usage last June. Other companies with operations in Singapore namely Three Arrows Capital and Vauld have also been struggling with their finances and operations are put on halt.
Zipmex holds a license for digital-asset trading from the Securities and Exchange Commission of Thailand. However, in Singapore, the company only holds a provider permit on their exempted payment service instead of a complete license approved by the central bank’s regulations on all digital asset providers.
Crypto exchanges like Vauld and Zipmex offered high yield to clients against storing their Bitcoin, Litecoin, and Ether. Its clients aren’t protected as the company isn’t licensed by the Monetary Authority of Singapore (MAS).
Furthermore, these recent events concerning crypto exchanges in Singapore have forced the MAS to intervene. As stated by the Monetary Authority of Singapore, they are looking further to widen the scope of crypto regulations and implement more rigorous rules. Ravi Menon, the managing director of MAS, announced there will be a seminar next month to talk about crypto regulations that include setting a more developmental and regulatory approach that will work with Singapore’s innovative vision.
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