Thai SEC licenses 4 crypto companies amid Zipmex controversy

Thai SEC licenses 4 crypto companies amid Zipmex controversy

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2022-08-11 02:36:40

Despite the turmoil in the domestic cryptocurrency market caused by Zipmex exchange, the Thai Financial Regulatory Authority, the Securities and Exchange Commission (SEC) has approved operations for four crypto companies. in this country.

SEC loosens crypto policy

Thai SEC relaxes crypto policy

According to media reports on August 4, the Thai SEC has granted operating licenses to four companies in the digital currency sector. Among them, highlights include: Krungthai XSspring – crypto broker affiliated with one of the country’s top banks and crypto exchanges T-BOX Thailand. The other two names are crypto advisors Coindeefund management company Leif Capital Asset Management.

Although they have been licensed, these 4 enterprises have not yet started operation because the management agency still has some further review procedures.

Currently, there are a total of 21 fully regulated digital asset operators in Thailand, including 9 exchanges, 9 brokers and 3 fund managers. The government of the Golden Temple has largely accepted cryptocurrencies, despite the central bank’s limited efforts.

According to the disclosure, another major player is waiting for an opportunity to enter Thailand’s burgeoning cryptocurrency market. Crypto volume in Thailand recorded a nearly 600% increase in early 2021, as the bull market built momentum.

Gulf Innova recently announced its association with Binance Capital Management to launch cryptocurrency exchange and brokerage “Gulf Binance”.

The move of the SEC in the midst of the Zipmex controversy

Worth mentioning, the move of the Thai-based SEC took place in an uncertain situation, related to Singapore’s Zipmex exchange operating in Thailand. At the end of July, Zipmex Thailand announced to suspend withdrawals for domestic customers using its ‘Z Wallet’. The SEC soon after, issued a contact for Zipmex clients to submit details of their losses.

On August 1, the SEC opened an investigation into Zipmex, saying that the company may have violated trading rules by suspending withdrawals. The agency claimed Zipmex cited inadequate reasons for acting like “market volatility”.

The SEC required the exchange to resume operations, and as of August 3, Zipmex resumed withdrawals for Solana (SOL) and withdrawals for Ripple (XRP) the next day, Cointelegraph reports. Withdrawals of larger assets such as Bitcoin and Ethereum remain suspended, as well as withdrawals from the exchange’s ZipUp+ service.

Follow The most recent official announcementon August 4, Zipmex pledged to resume all services as soon as possible.

The cause of Zipmex’s “wobble” comes from exposure to Celsius and Babel Finance. On August 3, Zipmex Thailand CEO – Akalarp Yimwilai said that their parent company in Singapore had invested $5 million to cover Celsius-related losses.

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