Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Crypto Exchange Zipmex Stops Withdrawals Citing Market Conditions, Financial Difficulties for Business Partners – Exchange Bitcoin News
Cryptocurrency exchange Zipmex has suspended withdrawals due to “volatile market conditions, and the resulting financial difficulties of our key business partners.” The exchange operates in Singapore, Australia, Indonesia and Thailand.
Zipmex puts withdrawals on hold
Crypto exchange Zipmex, which operates in Singapore, Australia, Indonesia and Thailand, has become the latest crypto company to halt withdrawals. The platform described itself as “Asia’s leading digital asset exchange that provides you with high liquidity and insurance on your assets.”
On Wednesday, Zipmex announced via Twitter that “due to a combination of circumstances beyond our control, including volatile market conditions, and the resulting financial difficulties of our key business partners … we will be suspending withdrawals until further notice.”
One of the services Zipmex offers is Zipup+ which offers up to 10% annual rewards on cryptocurrency, according to the website. The program offers five VIP levels. The basic VIP level offers 6% APY, while the highest level, VIP 4, offers up to 10% APY. “Make your crypto work hard so you can live easily. Get up to 12% APY on your cryptocurrency when you deposit with Zipmex. Flexible terms. No minimums,” Zipmex wrote.
Last August, the company raised $41 million with the participation of Bank of Ayudhya (Krungsri), one of Thailand’s largest banks. In the same month, Zipmex announced that it was teaming up with Visa to launch the Zipmex card.
Zipmex is a licensed cryptocurrency and digital token exchange in Thailand. However, the platform is not registered in Singapore to provide digital payment token (DPT) services.
“The Monetary Authority of Singapore (‘MAS’) requires us to provide this risk warning to you as a customer of Zipmex. Before paying Zipmex money or DPT, please be aware of the following,” Zipmex disclosed on its website, warning:
Zipmex is not currently licensed by MAS to provide DPT services. This means that you will not be able to recover all the money or DPTs you paid to Zipmex if the business of Zipmex fails.
This month, crypto lenders Celsius Network and Voyager Digital halted withdrawals and subsequently filed for bankruptcy protection. Babel Finance also suspended withdrawals in June, following problems at crypto hedge fund Three Arrows Capital (3AC).
What do you think about crypto exchange Zipmex stopping withdrawals? Let us know in the comments section below.
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