Thai SEC Approves News Crypto Firms As Old Ones Cause Problems

Thai SEC approves new crypto firms as old ones like Zipmex cause problems for the regulator.

Zipmex, one of its largest crypto companies is suspending withdrawals, but this doesn’t bother the financial regulator as the Thai SEC approves new crypto firms.

The Securities and Exchange Commission (SEC), Thailand’s financial watchdog, has authorized four additional cryptocurrency businesses in the country.

Four more operators of digital assets received operating licenses from the SEC, according to local media on August 4.

These include the cryptocurrency exchange T-BOX Thailand and Krungthai XSpring, a crypto broker connected to one of the major banks in the nation. Coindee, a cryptocurrency advisor and fund manager, and Leif Capital Asset Management, which also manages funds, also received regulatory approval.

However, the four firms have not yet started their operations because the regulator needs to inspect them first.

There are currently 21 fully regulated operators of digital assets in Thailand, including 9 exchanges, 9 brokers, and 3 fund managers. Despite the central bank’s attempts to impose restrictions, Thailand’s military-backed government has generally been accepting of cryptocurrencies.

According to the report, a further significant player is planning to enter the booming Thai cryptocurrency market. The joint venture “Gulf Binance” cryptocurrency exchange and brokerage is being developed by Gulf Innova and Binance Capital Management.

As the bull market gained traction, crypto volumes in Thailand increased by nearly 600 percent in the beginning of 2021.

The decision was made in the midst of unrest surrounding Zipmex, a Singaporean exchange that also has operations in Thailand. Customers in Thailand using Zipmex’s “Z Wallet” were unable to withdraw money as of late last month. Soon after, the SEC set up a hotline where Zipmex customers could report their losses in detail.

The SEC opened an investigation into Zipmex on August 1 because they believe the company may have broken trading regulations by halting withdrawals. It claimed that the company gave insufficient justifications for such actions, such as “market fluctuations.”

Zipmex resumed withdrawals for Solana (SOL) and Ripple (XRP) on August 3 after the regulator ordered the firm to resume trading operations. Both withdrawals from its ZipUp+ service and withdrawals of more substantial assets like Bitcoin and Ethereum are still halted.

The business tweeted on August 4 that it would resume all services as soon as possible.

Due to its exposure to Celsius and Babel Finance, Zipmex was affected by the crypto contagion this year. Akalarp Yimwilai, the CEO of Zipmex Thailand, announced on August 3 that the parent company in Singapore had contributed $5 million to make up for Celsius’ losses.

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