Crypto Exchange Zipmex Halts Withdrawals Citing Market Conditions, Financial Difficulties of Business Partners

Cryptocurrency exchange Zipmex has halted 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 Pauses Withdrawals

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 providing you 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 would be pausing withdrawals until further notice.”

One of the services Zipmex provides is Zipup+ which offers up to 10% annual rewards on cryptocurrency, according to its website. The program offers five VIP levels. The basic VIP level offers 6% APY whereas the highest level, VIP 4, offers up to 10% APY. “Make your crypto work hard, so you can live easy. Get up to 12% APY on your crypto when you deposit with Zipmex. Flexible terms. No minimums,” Zipmex wrote.

In August last year, the company raised $41 million with participation from the Bank of Ayudhya (Krungsri), one of Thailand’s largest banks. In the same month, Zipmex announced that it teamed 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 you pay Zipmex any money or DPT, you must 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 Zipmex’s business 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 troubles at crypto hedge fund Three Arrows Capital (3AC).