As the crypto winter draws upon, Singapore-based crypto exchange Zipmex becomes the latest to halt withdrawals on the platform. The cryptocurrency exchange also has major operations in Thailand.
Zipmex (Thailand) chief executive Akalarp Yimwilai, said that Zipmex has to succumb to financial difficulties owing to its exposure to troubled crypto lenders like Celsius Networks and Babel Finance. The official announcement reads:
“Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice”.
Alike Celsius, troubled crypto lender Babel Finance froze withdrawals last month in June. Reportedly, Zipmex has lent a staggering $100 million in funds to the beleaguered Balabel Finance.
As per Bloomberg, Akalarp said that the company is in talks to raise funds for the bailout, on a YouTube video that has now been removed.
Singapore Tightening Crypto Regulations
Zipmex joins the list of other Singapore-based firms like Three Arrows Capital and Vauld, in deciding to halt withdrawals. Singapore’s crypto-friendly regulations were the key reason behind companies flocking to the country.
However, the recent events have forced the Monetary Authority of Singapore (MAS) to intervene. Earlier this week, MAS said that Singapore is looking to further broaden the scope of crypto regulations and bring stricter rules.
MAS managing director Ravi Menon said that next month the central bank will hold a seminar to put more light on crypto regulations. “We will set out how our developmental and regulatory approaches will work in harmony to achieve the vision of Singapore as an innovative and responsible digital asset hub,” he said.
Exchanges like Zipmex and Vauld offered high yields to customers against storing their Bitcoin, Ether, and Litecoin. Those customers won’t be allowed to withdraw their assets. Zipmex said that prospective customers aren’t protected as the company isn’t licensed by the MAS.