Tightens Crypto Ad Rules After Zipmex Thailand Freeze

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The Securities and Exchange Commission (SEC) fined digital asset trader Zipmex Thailand Co Ltd 1.92 million baht on Wednesday.

The Securities and Exchange Commission (SEC) has set rules for crypto organizations’ publicizing, joining nations like Singapore in attempting to protect retail financial backers following a US$2-trillion selloff in computerized resource markets.

The SEC stated in a messaged assertion on Thursday that notices for virtual tokens should include clear and obvious warnings about the risks of investing in digital currencies.

Specialists had previously stated their intention to set up additional guarantees for small financial backers. The new rules come after Zipmex (Thailand), a privately authorized cryptographic money trade, and its provincial parent stopped a few withdrawals last month.

On August 15, a Singapore court granted the parent company, Zipmex Pte, three months of insurance from lenders.

According to the assertion, the SEC made decisions after discovering that some advertisements contained no warnings about digital currency opportunities, while others highlighted only specific data.

The following are some of the subtleties of the more stringent crypto publicizing guidelines:

SEC Imposes THB1.92-Million Fine On Zipmex Thailand

Thailand Tightens Crypto Ad Rules After Zipmex Freeze
Thailand Tightens Crypto Ad Rules After Zipmex Freeze

The fines were exacted for two offences: suspending computerised resource exchanging in violation of the SEC’s exchanging rules, and prohibiting clients from storing and withdrawing from the organization’s Trade Wallet and Z Wallet.

The SEC stated that from July 20-28, 2022, Zipmex, an administrator of a computerised resource exchanging centre and a computerised resource merchant, had suspended exchanging of advanced resources on its foundation, both partially and completely, without adhering to the standards and conditions specified in the SEC’s exchanging rules. A fine of 540,000 baht was imposed for the offence.

The SEC also stated that from July 20 to August 25, 2022, Zipmax suspended the storage and withdrawal of client resources from the company’s Trade Wallet and Z Wallet, disregarding professional ethics and failing to provide quality support This offence resulted in a fine of 1,380,000 baht.

Meanwhile, Zipmex Thailand posted on Facebook on Thursday: “The organisation focuses on adhering to the rules and maintaining professional morals in all aspects of business activity.

We are prepared to meet with the SEC to discuss the fine request, and we will evaluate the disciplines closely with our legal counsel. We comprehend the SEC’s obligation and obligation in computerised resource checking to ensure the security of all financial backers.”

Zipmex Thailand suspended trading on its foundation on July 20 in order to remove ZipUp+ from the stage.

Zipmex Thailand CEO Akalarp Yimwilai later stated on Facebook Live that ZipUp+ was the result of Zipmex Global, a key partner of Zipmex Thailand. He stated that Zipmex Global had saved coins in ZipUp+ with two cryptocurrency banks, Babel Finance and Celsius, who were experiencing liquidity issues and were unable to return the computerised resources. Celsius has fallen short.

SEE ALSO:
Thai SEC Gets Strict On Crypto Promotion

Zipmex Thailand has announced that it will sue Babel Finance for the delivery of its clients’ advanced resources.

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