Thai SEC approves four crypto firms despite Zipmex woes

August 5, 2022 Coin Telegraph

Thailand’s regulators are still approving crypto companies despite one of its largest ones suspending withdrawals.

Thailand’s financial regulator, the Securities and Exchange Commission (SEC), has approved four more crypto companies in the Kingdom.

On Aug. 4, it was reported in local media that the SEC had granted operating licenses to four more digital asset operators.

These include Krungthai XSpring, a crypto broker affiliated with one of the country’s leading banks, and crypto exchange T-BOX Thailand. Also winning regulatory approval was crypto advisor and fund manager Coindee and Leif Capital Asset Management, which also manages funds.

The four firms have yet to commence operations, however, as the regulator still needs to inspect their operations.

Thailand now has 21 fully regulated digital asset operators comprising nine exchanges, nine brokers, and three fund managers. Thailand’s military-backed government has been largely tolerant of cryptocurrencies despite the central bank’s efforts to restrict them.

The report noted that another major player is waiting to enter the burgeoning Thai crypto market. Gulf Innova and Binance Capital Management aim to launch the jointly owned “Gulf Binance” crypto exchange and brokerage.

Crypto volumes in Thailand surged almost 600% in early 2021 as the bull market was building momentum.

The move comes amid turmoil regarding the Singaporean exchange Zipmex, which also operates in Thailand. Late last month, Zipmex Thailand suspended withdrawals for customers in the country using its ‘Z Wallet.’ Shortly after, the SEC launched a hotline for Zipmex customers to submit details on their losses.

On Aug. 1, the SEC launched an investigation into Zipmex, claiming the company may have violated trading rules by suspending withdrawals. It stated that the firm cited inadequate reasons for such actions as “market fluctuations.”

The regulator ordered the firm to resume trading operations, and by August 3, Zipmex had resumed withdrawals for Solana (SOL) and Ripple (XRP) the following day, as reported by Cointelegraph. Withdrawals of larger assets such as Bitcoin and Ethereum remain suspended, as are withdrawals from its ZipUp+ service.

On Aug. 4, the firm tweeted that it was committed to resuming all services asap.

We are committed to resuming all services on the Zipmex platform ASAP and to rebuild confidence and alleviate customer concerns.

To read more, click https://t.co/J7IVjWsq6N pic.twitter.com/tfZ4lhjXVf
— ZIPMEX (@zipmex) August 4, 2022

Zipmex was caught up in this year’s crypto contagion due to its exposure to Celsius and Babel Finance. On Aug. 3, Zipmex Thailand CEO Akalarp Yimwilai said that its parent company in Singapore had injected $5 million to compensate for the Celsius losses.

Thai SEC launches digital hotline for Zipmex users

July 25, 2022 Coin Telegraph

Coin Telegraph

The investors affected by Zipmex's withdrawals' pause can submit information about their losses via an online forum on the Thai SEC’s official website.

In the aftermath of the Thai cryptocurrency exchange Zipmex stopping withdrawals last week, local financial regulators are stepping in to look into potential losses by investors.

Thailand’s Securities and Exchange Commission (SEC) is taking action to collect all necessary information from investors on how they have been affected by issues on Zipmex.

The regulator officially announced on July 25 that Zipmex customers can submit information via an online forum on the Thai SEC’s official website.

The SEC has received a number of complaints from people affected by Zipmex after the crypto exchange temporarily suspended withdrawals of the Thai baht and digital assets on July 20, the regulator said.

“In the past, the SEC issued a letter requesting the company [Zipmex] to provide an efficient system to contact customers and handle complaints, as well as to take into account the protection of the interests of customers,” the announcement notes.

Zipmex is one of the major cryptocurrency exchanges officially regulated by the government of Thailand, alongside platforms like Upbit, Bitkub and others. The Zipmex exchange abruptly stopped withdrawals last week, citing a “combination of circumstances” that were beyond the company’s control, including “volatile market conditions.”

The withdrawals’ pause came amid Bitcoin (BTC) hitting multi-week highs above $24,000. Zipmex partially resumed some operations on the platform, re-launching withdrawals from its trade wallet after two days after disabling withdrawals. “Transfer from Z Wallet, deposit and trade will continue to be disabled until further notice,” the firm said.

Zipmex resumes withdrawals for trade wallets

July 22, 2022 Coin Telegraph

Business

The crypto exchange said it had $48 million in exposure with Babel Finance and $5 million with Celsius — both firms faced liquidity and insolvency issues, respectively.

Cryptocurrency exchange Zipmex has resumed withdrawals from its trade wallet after two days, but said transfers, deposits and trade will continue to be disabled from its Z Wallet.

In a Friday announcement, Zipmex said its Thailand-based users could make withdrawals from its trade wallet, with the function expected to be “re-enabled this evening” for clients in other countries. The crypto exchange has had withdrawals disabled since Wednesday, citing a "combination of circumstances" beyond its control, including the recent market volatility.

“Ever since the black swan events surrounding the crypto space Zipmex has retrieved the majority of our funds and assets that were historically deposited with our deployment partners and have been actively working to resolve the situation for the remaining outstanding assets,” said Zipmex. “There were no materially adverse impacts to our operations.”

Important Announcement

Maintenance on the Trade Wallet has ended. Withdrawals for your Trade Wallet are now enabled as of 22 July 2022 at 18:00 (GMT+7).

Transfer from Z Wallet, deposit and trade will continue to be disabled until further notice. pic.twitter.com/voMInELlH5
— ZIPMEX (@zipmex) July 22, 2022

Cointelegraph reported on Wednesday that, according to a person close to the exchange, Zipmex had roughly $100 million in exposure to crypto lender Babel Finance, which was at risk of default. The Hong Kong-based firm halted withdrawals in June, citing "unusual liquidity pressures."

However, according to Zipmex, the exchange only has $48 million in exposure with Babel and $5 million with Celsius, which may also be facing insolvency. Zipmex said it was in discussions with Babel to resolve the situation and was “actively engaging” with Celsius:

“Our exposure to Celsius was minimal, as such, we were intending to write this off against our own balance sheet.”

Zipmex offers services for users in Thailand, Indonesia, Singapore and Australia. Cointelegraph reported in August 2021 that the exchange’s user base had reached 200,000 with more than $1 billion in gross transaction volume since its launch in 2019.

Thailand’s Oldest Lender Delays Bitkub Exchange Acquisition Amid Tighter Crypto Rules

July 22, 2022 Bitcoin.com

Strict Thai crypto regulation causes SCB to delay Bitkub acquisition

July 21, 2022 Coin Telegraph

bitcoin regulation

SCB X notified the Stock Exchange of Thailand that the Bitkub acquisition is “still undergoing due diligence.”

Thailand’s oldest bank is unable to acquire the country’s largest local cryptocurrency exchange due to stringent crypto regulations.

As reported by Cointelegraph in November 2021, SCB X Group, a subsidiary of Siam Commercial Bank (SCB), was set to acquire a 51% stake in Bitkub by the second quarter of 2022 as part of a plan to become a regional fintech. Now things seem to have taken a twist, as the bank has indefinitely postponed its plans to acquire the popular exchange.

As crypto trading continues to be hampered by regulation, SCB X has indefinitely decided not to move forward with a $487 million offer for a 51% stake in Bitkub, Thailand’s major cryptocurrency exchange platform.

According to a report by Nikkei Asia on Thursday, the parent company of SCB, SCB X, informed the Stock Exchange of Thailand (SET) that the acquisition is “still undergoing due diligence.” A senior official of SCB X told the outlet that the team doesn't know when the deal will be sealed.

The news of the reschedule was revealed earlier this month when SCB X submitted a letter to SET outlining the current situation. In a statement, SCB X CEO Arthid Nanthawithaya said:

“Presently, the matter is in the process of due diligence and discussion with the regulatory bodies. Therefore, the completion period of the transaction is now extended.”

Thailand is regarded as one of Asia’s most progressive crypto nations, with traders granted tax breaks and a regulated market for cryptocurrency exchanges. Regardless, Many cryptocurrency exchanges, including Binance and Huobi, have previously struggled with regulatory restrictions guidelines in the country.

Earlier this year, the Bank of Thailand and the Securities and Exchange Commission (SEC) recently announced stricter cryptocurrency regulations and usage limitations to ensure that cryptocurrencies can only be traded as assets on licensed platforms. The news came as global crypto prices plummeted and damaged crypto trading optimism, even more, dashing Bitkub's aspirations of increasing its client base.

On July 2, the SEC imposed civil penalties on Bitkub Capital Group Holdings Chairman Sakolkorn Sakavee for making up trading volume data. He was fined $216,000 (8 million baht) and banned from managerial roles in the firm for a year.

Breaking: Zipmex suspends withdrawals as CEO denies financial trouble rumors

July 20, 2022 Coin Telegraph

Asia

Cointelegraph spoke to the CEO of Zipmex following the failed Coinbase deal regarding rumors that crypto contagion has spread to Thailand.

Thai cryptocurrency exchange Zipmex has paused withdrawals on its platform following a "combination of circumstances" beyond its control. Cointelegraph reports that Zipmex could be in trouble were dismissed moments prior as “rumors” just moments earlier by CEO and co-founder Marcus Lim following the failed acquisition of the Thai exchange by Coinbase.

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

Coinbase made an offer to acquire the Thai cryptocurrency exchange Zipmex earlier in quarter one 2022. On June 9th, the acquisition fell through. Instead, Coinbase made a “strategic investment” into the company —the amount has not been disclosed.

Lim told Cointelegraph that while Coinbase is an interesting partner, “an investor makes more sense at this stage.” He explained that the group speaks to a number of different parties at any point in time, citing the bear market as the reason why Coinbase opted out of the acquisition:

"The acquisition fell through due to market conditions. They've pulled out in many countries around the world such as Turkey and in Latin America. Coinbase is a great strategic partner to the business."

According to the Block, Zipmex is working on a Series B+ raise that could value it at $400 million. Cointelegraph reported that Zipmex has compliant operations in Thailand, Indonesia, Singapore and Australia. In August 2021, Zipmex’s user base reached 200,000, while it has reported over $1 billion in gross transaction volume since its launch in late 2019.

According to Zipmex press releases, the company's Thai subsidiary has a Digital Assets Exchange license and Brokerage license issued by the Ministry of Finance of Thailand, while the group is regulated by the Securities and Exchange Commission.

However, a source close to the exchange explained that Zipmex could be in trouble. According to the source, who chose to remain anonymous, Zipmex “has a Thai exchange license and an exempt status in Singapore.”

“Under the Thai License they are strictly not allowed to touch customer funds. However, Zipmex has a product on the exchange called zip-up that effectively lets users move funds under the Singapore entity to earn yield.”

The source explained that the “funds were given to Babel to generate the yield. About $100m was lent to Babel, which is now at risk of default.” In June, Hong Kong-based asset manager Babel Finance halted withdrawals, due to "unusual liquidity pressures."

South East Asia has not been shielded from the bear market crypto contagion, as across the Gulf of Thailand, in Singapore, Vauld exchange recently froze customers’ funds. Nexo has reportedly offered a buyout but that the group also offered to buy out Celsius.

When pressed on whether Zipmex could face the same consequences as Celsius, the source commented that “it's possible. Babel hasn't settled their default yet, and it's a 100 million dollar hole." Celsius froze users’ funds on June 13th, and many fear the exchange could suffer the same fate as Mt. Gox.

In response to the allegations, Lim told Cointelegraph that it was “business as usual.” Lim emphasized that the group “doesn’t comment on rumors.”

However, as per reports from customers of Zipmex and the official Zipmex Twitter account, Zipmex has since frozen customer withdrawals.

A ‘very ambitious’ $100M Metaverse R&D hub is being built in Melbourne

June 23, 2022 Coin Telegraph

<div>A ‘very ambitious’ 0M Metaverse R&D hub is being built in Melbourne</div>

Coin Telegraph

“We're really designing a whole world,” Two Bulls founder James Kane said about the role his business will play in the yet to launch metaverse.

Thailand based metaverse startup Translucia Global Innovation has partnered with the Australian software development firm Two Bulls and set aside an initial budget of $100 million to build a Metaverse Research and Development Center (MRDC) in Melbourne.

Translucia is a subsidiary of art and entertainment company T&B Media Global which in October 2021 launched its “Translucia Metaverse” project, with a first stage investment of $283 million for the virtual world.

Now, T&B are partnering with Two Bulls to build the MRDC to bring the project to life with a slated soft-launch for November this year.

Two Bulls Founder and CEO James Kane told Cointelegraph that T&B undertook a worldwide search for a partner that could help realize the Translucia Metaverse project

“There was an understanding there would need to be significant research and development,” he said. “It's a very ambitious project.”

A series of conversations between the two organizations this year resulted in the realization that Two Bulls’ best role would be in as a hub for research and development (R&D) to help build it.

“We've been there really early on in the conversations around the innovative elements of this metaverse project. What it’s going to look like, what the experience is going to be and what sort of technology platforms it’s going to run on.”

“The center itself is really an extension of what Two Bulls already does,” added Kane.

Melbourne’s skilled local workforce and an R&D tax incentive of up to 45c for every eligible $1 spent helped seal the deal.

“The R&D incentives we receive is a decisive factor in T&D setting up a center like this in Australia”

What they need to research

A lot of new areas will need to be explored for the project not only in terms of hardware and software, but in the system’s economics and gamification also. Part of the project will focus on improving the energy consumption of the metaverse also.

The MRDC will focus on the technology, creating demonstrations to get feedback from users and creating what he calls a “GDD”, or Game Design Document.

“It’s much bigger than that because we're really designing a whole world. It has to have a functional economy, it has to be properly moderated, it has to have all of these different components that is going to make it an enjoyable place to be.”

Despite much work to be completed before the MRDC and the metaverse opens, Kane says there’s already plenty of interest. He gave the example of Magnolia Quality Development Corporation, a large Thai property development company who have already signed on to be a “galaxy”.

“Within the metaverse there will be ‘galaxies’ and some businesses have already signed on to be galaxies within that larger metaverse [...] T&B are having conversations with dozens of others and there'll be announcements around that.”

Kane said a notable difference to other metaverses like Decentraland and Sandbox was that the Translucia metaverse was committed to sustainability, and has a more people friendly vision.

He discussed some of the concerns about the philosophy and vision of some other unnamed metaverses, saying:

“A lot of metaverses are around profiteering and opportunism, whereas in this metaverse there really is a strong central vision around putting people first before coins, putting people before profit, and putting the environmental concerns before profit.”

Huobi crypto exchange wins licenses in Dubai and New Zealand as Thai affiliate closes

June 21, 2022 Coin Telegraph

Coin Telegraph

Huobi cryptocurrency exchange is expanding its global footprint by winning its first-ever licenses in Dubai and New Zealand.

Major cryptocurrency trading platform Huobi continues expanding its global presence by securing new licenses in New Zealand and the United Arab Emirates.

Huobi Group on June 17 obtained the Innovation License under the Dubai International Financial Centre (DIFC), securing the company’s first-ever license there.

The DIFC license is not a trading license but rather authorizes Huobi to incentivize technology startups to set up operations in Dubai, Huobi Group chief financial officer Lily Zhang told Cointelegraph on Monday. The license unlocks a number of benefits like access to the local tech ecosystem and preferential treatment for technology research and developments, capital flows and taxes.

Huobi also plans to receive a Virtual Asset MVP License from Dubai’s Virtual Assets Regulatory Authority (VARA), allowing the company to offer a full range of cryptocurrency exchange products and services, Zhang noted, stating:

“We do not have other licenses in Dubai. We do have a small office there that caters to some key account and institutional customers in the Middle East region. We are, however, applying for provisional approval for a Virtual Asset MVP License from the Dubai VARA.”

Apart from pushing its presence in the UAE, Huobi has also received registration on New Zealand's Financial Services Provider Register (FSPR) to offer its crypto trading services in the country.

The FSPR registration is Huobi Group’s first step towards expanding its cryptocurrency trading business in New Zealand, as all exchanges are required to register on the platform to offer trading services to local users.

The registration allows Huobi’s local entity, HBGL New Zealand Limited, to operate a regulated foreign currency exchange and money or value transfer services in New Zealand. The registration also allows Huobi to provide asset management services and over-the-counter trading.

“In New Zealand, cryptocurrencies themselves are not considered legal tender, but regulators treat cryptocurrency exchanges, brokers, and other businesses offering investment opportunities much like they do other financial services providers,” Zhang said in a statement to Cointelegraph.

Huobi’s latest regulatory milestones come shortly after the firm’s Thailand-based affiliate firm, Huobi Thailand, announced it was permanently closing in mid-June after the Thai Securities and Exchanges Commission revoked the firm’s operating license. The local firm plans to wind down operations by July 1.

“We would like to reiterate that Huobi Thailand was not a part of Huobi Global, but rather a separate entity formed together with a local partner in 2019 as a part of our Huobi Cloud division,” Zhang noted. The exec declined to provide exact figures for Huobi Thailand’s trading volumes, only stating that it was a “relatively small and insignificant part” of Huobi’s business as a whole.

Huobi to permanently shut crypto operations in Thailand

June 16, 2022 Coin Telegraph

Coin Telegraph

Huobi Thailand failed to fix system issues despite several extensions given by the Thai SEC.

Huobi’s Thailand unit is set to wind down operations by July 1, after its operating license was revoked by the Thai Securities and Exchanges Commission (SEC).

The Thai SEC revoked Huobi’s license in May after it failed to comply with the local regulations. The permanent closure orders come nearly eight months after the regulators suspended the exchange’s services in September.

The exchange claimed it has tried to fix the regulatory issues but would have to wind down operations owing to SEC orders.

“Due to the SEC decision, Huobi Thailand is no longer an authorized digital asset exchange in Thailand. We will be shutting down the platform permanently on July 1, 2022.”

The official statement from the Thai SEC revealed that the crypto exchange was first warned about its inadequate system measures in March last year. The crypto exchange was also granted multiple extensions to fix its trading system, customer asset retention system. and information technology systems, but despite multiple extensions and assurances, the crypto exchange failed to comply with SEC regulations.

Thus after a thorough review of the series of violations and failure to fix the issues, the regulatory body decided to revoke the digital asset business license permanently on May 17, 2022.

“The Finance Minister, on the recommendation of the SEC, considered that Huobi still violated and failed to comply with the SEC's order conditions. Digital asset business license in the category of a digital token trading center of Huobi is revoked, effective from May 17, 2022.“

The crypto exchange has put out a notice on its official Thai platform website, reminding customers to withdraw their funds and also left a refund address to contact in case users fail to withdraw their funds before the permanent closure.

Huobi didn’t respond to requests for comments from Cointelegraph at press time.

Thailand is considered as one of the progressive crypto nations in Asia with tax exemptions for traders and a regulated environment for crypto exchanges. However, many crypto exchnages in the past have faced issues with the regulatory guidelines including Binance.

Earlier in March this year, the Thai SEC banned crypto as a means of payment and also announced that crypto exchanges must disclose their system failures to ensure user protection.

Thailand Exempts Crypto Transfers From VAT Until End of 2023

May 25, 2022 Bitcoin.com

thailand