Singapore-Based Crypto Exchange Zipmex Halts Withdrawals Due to Market Conditions
by Fintech News Singapore July 21, 2022Singapore-based cryptocurrency exchange Zipmex announced that it will be pausing withdrawals on its platform until further notice.
Zipmex, which operates in Singapore, Australia, Indonesia, and Thailand, has joined the likes of Vauld to halt withdrawals during this crypto downturn.
On Wednesday, Zipmex said in a tweet that the “combination of circumstances beyond its control including volatile market conditions and the resulting financial difficulties of its key business partners” as its reasons.
According to a report by The Business Times quoting anonymous sources, the crypto exchange was referring to crypto lender Babel Finance in this statement.
In just August last year, Zipmex had secured over US$41 million in Series B funding from Bank of Ayudhya’s corporate venture capital arm, Krungsi Finnovate among others.
Zipmex is not currently licensed by the Monetary Authority of Singapore (MAS) to provide Digital Payment Token services. This means that customers will not be able to recover all the money or DPTs that they have paid to Zipmex if its business fails.
MAS had repeated dire warnings to consumers saying that investments in cryptocurrencies is highly risky. The regulator is working on broadening the current crypto regulations to include consumer protection, market conduct, and reserve backing for stablecoins.
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.
— ZIPMEX (@zipmex) July 20, 2022
