New bill in Singapore could broaden MAS regulatory oversight of crypto

The Thai Securities and Exchange Commission (SEC) has issued a directive mandating Zipmex, a Singapore-based digital asset trading and brokerage platform, to temporarily suspend its operations. This decision is driven by the SEC's call for significant changes in Zipmex's management structure and an improvement in its financial position. The regulator outlined that the cryptocurrency exchange can resume normal operations if it addresses these concerns.Photo by Dan Freeman on Unsplash15 days to rectify issuesIn an official announcement last Friday, the SEC conveyed that Zipmex has a specified period of 15 days to rectify its financial position and operational deficiencies, aligning with the prior orders from the financial regulator. The SEC emphasizes that once the crypto exchange fulfills the regulator's requirements, users should be able to resume fund withdrawals. The securities watchdog had initially issued an order to Zipmex on Jan. 12, instructing the exchange to adjust the maintenance of its net liquid capital and modify its business administration structure and personnel to enhance efficiency and protect customer interests. Anek Yooyuen, Deputy Secretary General of the SEC, explained the legal process involved, stating: "According to the process specified by law, if the digital asset business operator is unable to comply with the SEC’s orders within the specified period, the SEC may propose that the Minister of Finance consider revoking the order." Implementation of robust system to protect investorsIn addition to implementing the SEC's orders regarding its financial operation and operational deficiencies, the exchange is required to establish a robust system protecting investors' deposited assets against exploitation. Once these objectives have been achieved within the required timeframe, Zipmex is obligated to submit a report on these implementations for SEC approval, paving the way for the resumption of operations. The Thai regulator stated that “Zipmex will be able to resume normal business operations upon receiving permission from the SEC.” Longstanding regulatory scrutinyZipmex has been under the regulatory microscope since 2023, facing scrutiny following the company’s struggles off the back of the last crypto market downturn. The SEC's investigation includes a probe into an acquisition by V Ventures and whether Zipmex operated in Thailand without regulatory approval. V Ventures canceled its $100 million buyout of the company in 2023, which would have included the return of customer deposits. The Thoresen Thai Agencies subsidiary company deemed the entire deal terminated on the basis that Zipmex had not fulfilled its contractual obligations relative to the buyout. The platform suspended trading in November 2023, citing regulatory compliance as the reason. Despite the operational suspension, user withdrawals will remain accessible to facilitate an exit from the platform. The initial freeze of withdrawals in July 2022 due to Terra's ecosystem collapse, coupled with crypto lender bankruptcies, led Zipmex to seek court protection and legal assistance to raise capital for creditor payouts. The platform presented a reorganization plan last year, proposing creditor payouts of up to 30 cents on the dollar, subject to asset recovery. However, the initial offer was set at 3.35 cents, with the potential for a higher repayment figure based on the firm's eventual asset recovery. 

Despite ongoing fluctuations in the cryptocurrency market, analysts suggest that sustained institutional activity is likely to underpin a near-term rebound. As Bitcoin recovered above $90,000 on Dec. 5, market observers began weighing potential risks against growing evidence of corporate and sovereign adoption.Photo by Austin Hervias on UnsplashStructural risks seen as limitedAccording to South Korean news outlet Etoday, Hong Sung-wook, a researcher at NH Investment & Securities, said that the recent slump in both Bitcoin and Strategy stock may weigh on shareholders but does not fundamentally threaten the company’s solvency. He noted that concerns that typically emerge during Bitcoin downturns seldom reflect new underlying risks. Addressing the potential removal of Strategy from the MSCI index, pending review results expected by Jan. 15, Hong indicated that the impact would likely be limited, as the firm has already exhausted its capacity to make additional Bitcoin purchases. However, he cautioned that prolonged share price weakness could force companies to reevaluate digital asset treasury (DAT) models. Such a shift, he warned, could trigger corporate sell-offs that would burden the broader market. Hong also addressed concerns related to stablecoins and future technology. Despite S&P Global Ratings assigning Tether its lowest grade of "weak," Hong observed that the issuer maintains reserves exceeding the USDT in circulation, rendering a mass withdrawal crisis unlikely. Regarding the threat of quantum computing, he argued that the timeline remains uncertain and that the Bitcoin network could mitigate future risks through consensus-driven protocol upgrades. Policy moves may offer market tailwindsLooking ahead, the analyst identified several constructive developments that could bolster the market, including the potential passage of a U.S. crypto market structure bill early next year. He also pointed to the anticipated nomination of Kevin Hassett as Federal Reserve Chair by President Trump. Hassett is expected to favor interest rate cuts, creating a potentially favorable macro environment. Additionally, Vanguard’s decision to permit the trading of select third-party crypto ETFs and mutual funds was cited as significant, given the asset manager’s historically conservative stance on digital assets. While the market has shifted into a broader risk-off mode, institutional demand for Bitcoin has continued to build, including activity that began well before the recent pullback. The Czech central bank recently established a $1 million test portfolio comprising Bitcoin, a USD stablecoin, and a tokenized deposit to research payment futures, though it clarified that it does not currently plan to add digital assets to its international reserves. In the academic sector, a Form 13F filing with the U.S. SEC revealed that Harvard Management Company, which oversees a $56.9 billion endowment, held 6.8 million shares of BlackRock’s iShares Bitcoin Trust ETF (IBIT) as of Sept. 30, a threefold increase from the previous quarter. Furthermore, BlackRock CEO Larry Fink reportedly stated at the New York Times DealBook Summit 2025 that multiple sovereign wealth funds have begun accumulating Bitcoin, according to Forbes. Korean banks advance crypto integrationThis shift toward institutional acceptance is also materializing within South Korea’s traditionally conservative banking sector. The Maeil Business Newspaper reported that Woori Bank recently became the first major South Korean lender to display real-time Bitcoin prices on its trading floor, allowing dealers to track the asset alongside equities and foreign exchange rates. Concurrently, Hana Financial Group announced a partnership with Dunamu, the operator of the Upbit exchange, to develop blockchain-based remittance services, according to The Korea Economic Daily. By leveraging Hana’s global network and Dunamu’s technology, the initiative aims to reduce settlement times and costs for cross-border payments. Hana intends to introduce the technology for transactions between its Korean offices and overseas branches as early as the first quarter of next year, with broader expansion planned as domestic regulations evolve. Hana intends to launch the service at overseas branches as early as the first quarter of next year, with gradual expansion planned as domestic regulations evolve. 

No Turkish Delight for Crypto Exchange CEO Sentenced to 11,196 YearsIn a landmark ruling, Faruk Fatih Ozer, the 29-year-old Turkish Founder and CEO of defunct Turkish crypto exchange Thodex, has been sentenced to 11,196 years in prison for orchestrating a massive fraud that left investors out of pocket.Photo by engin akyurt on UnsplashExtradited from AlbaniaBloomberg reported on Friday that Ozer, the mastermind behind the Thodex exchange, fled to Albania in 2021, vanishing along with millions of dollars in investor assets as the exchange suddenly crumbled.His arrest in Albania on an Interpol warrant marked the beginning of a lengthy legal battle. Having spent months on the run, he was finally extradited back to Turkey in June, where he faced charges of money laundering, fraud, and organized crime. During the trial in Istanbul, Ozer defended himself, claiming that his actions did not demonstrate criminal intent. He asserted:“I am smart enough to lead any institution on Earth.”“That is evident in this company I established at the age of 22. I wouldn’t have acted so amateurishly if this were a criminal organization,” he added. Nevertheless, the court found him guilty, along with his sister Serap and brother Guven, who faced the same charges.Lengthy jail termThe sentences handed down were notably long, with the defendants sentenced separately for multiple crimes against 2,027 victims. Following the abolition of the death penalty in 2004, lengthy prison sentences are quite common in Turkey.Prosecutors had initially sought a jaw-dropping 40,562-year prison sentence for Ozer, although the difference would have been purely symbolic when compared with the sentence which was ultimately handed down. The Thodex exchange, founded in 2017, quickly rose to prominence as one of Turkey’s largest cryptocurrency platforms.Ozer’s financial acumen earned him national recognition, and he even cultivated ties with influential pro-government figures. However, the sudden implosion of the Thodex exchange in April 2021 shook the cryptocurrency world. Investor assets vanished, and Ozer went into hiding.Reports initially indicated that Ozer had fled with assets worth $2 billion, but the prosecutor’s indictment put the total losses to Thodex investors at 356 million Turkish liras. The depreciation of the lira and rampant inflation since the exchange’s collapse means that this amount is now equivalent to around $13 million on the international markets.Lagging regulationThe Thodex case serves as a stark reminder of cryptocurrency market risks, given its immature state and the lag in regulators responding to the innovation in order to ensure a safe marketplace for investors.Despite this setback in the development of the crypto ecosystem within Turkey, interest in crypto is stronger than ever. A recent report produced by Seychelles-based crypto exchange KuCoin found that there has been a significant increase in crypto market participants in Turkey over the course of the past 18 months. It’s likely that runaway inflation of the Turkish lira is providing Turks with the motivation to investigate crypto as an alternative.