Singapore-based Zipmex exchange Halts Withdrawals, Has Exposure to Celsius and Babel

As the crypto winter attracts upon, Singapore-based crypto exchange Zipmex turns into the most recent to halt withdrawals on the platform. The cryptocurrency exchange additionally has main operations in Thailand.

Zipmex (Thailand) chief govt Akalarp Yimwilai, stated that Zipmex has to succumb to monetary difficulties owing to its publicity to troubled crypto lenders like Celsius Networks and Babel Finance. The official announcement reads:

“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”.

Alike Celsius, troubled crypto lender Babel Finance froze withdrawals final month in June. Reportedly, Zipmex has lent a staggering $100 million in funds to the beleaguered Balabel Finance.

As per Bloomberg, Akalarp stated that the corporate is in talks to increase funds for the bailout, on a YouTube video that has now been eliminated.

Singapore Tightening Crypto Regulations

Zipmex joins the checklist of different Singapore-based corporations like Three Arrows Capital and Vauld, in deciding to halt withdrawals. Singapore’s crypto-friendly rules have been the important thing cause behind firms flocking to the nation.

However, the current occasions have compelled the Monetary Authority of Singapore (MAS) to intervene. Earlier this week, MAS stated that Singapore is wanting to additional broaden the scope of crypto rules and convey stricter guidelines.

MAS managing director Ravi Menon stated that subsequent month the central financial institution will maintain a seminar to put extra gentle on crypto rules. “We will set out how our developmental and regulatory approaches will work in harmony to achieve the vision of Singapore as an innovative and responsible digital asset hub,” he said.

Exchanges like Zipmex and Vauld provided excessive yields to prospects towards storing their Bitcoin, Ether, and Litecoin. Those prospects gained’t be allowed to withdraw their belongings. Zipmex stated that potential prospects aren’t protected as the corporate isn’t licensed by the MAS.

Bhushan is a FinTech fanatic and holds a great aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and typically discover his culinary abilities.

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