Matrixport Bullish Despite Bitcoin’s Price Standoff

Zipmex Thailand halts crypto trading citing SEC complianceTroubled cryptocurrency exchange Zipmex Thailand has recently announced the temporary suspension of digital asset trading until early next year.Photo by Anh Tuan To on UnsplashTrading and deposits suspendedThe decision, outlined by the firm in a Facebook post on Saturday, is attributed to the platform’s efforts in ensuring full compliance with the standards set by Thailand’s Securities and Exchange Commission (SEC).In the Facebook post, Zipmex Limited addressed its customers, stating:“Dear customers, Zipmex Limited would like to ensure the proper and compliant conduct of the company’s business operations in accordance with the criteria set by Thailand’s Securities and Exchange Commission (SEC).”The suspension of digital asset trading and deposits of all types became effective from Nov. 25.Withdrawals remain openDespite the suspension, customers will retain the ability to withdraw Thai baht and digital assets from their Trade Wallet through the website and mobile application until Jan. 31, 2024. However, for digital assets categorized as “Trade Only,” customers are instructed to contact Customer Support for withdrawal. Beyond Jan. 31, 2024, when the withdrawal feature through the website and mobile application is suspended, customers will need to seek assistance from Customer Support.Zipmex Thailand also emphasized that the withdrawal process for digital assets may take between seven to 14 days, requiring customers to provide supporting documents for identity and account ownership verification.As a cryptocurrency exchange headquartered in Singapore and operating in multiple countries, including Thailand, Australia and Indonesia, Zipmex has already fallen foul of Thailand’s SEC. Earlier this year, it was hit with penalties related to allegations of improper use of a digital asset custodian service and the redirection of customers to the Singapore-based exchange, Zipmex Pte, creating a conflict of interest.Financial difficultiesThe exchange has faced financial challenges, including difficulties in repaying creditors after losses incurred from exposure to crypto lenders Babel Finance and Genesis in 2022. A planned $100 million buyout earlier in the year fell through when the buyer, reportedly V Ventures, withdrew from the purchase.Zipmex’s troubles date back to last summer when the exchange halted withdrawals due to volatile market conditions and a liquidity crunch resulting from exposure to the troubled crypto lender Babel Finance. Despite facing financial difficulties, the exchange expressed its commitment to maintaining the integrity of its platform.In August of the same year, Bloomberg reported that Zipmex intended to meet with potential investors and Thailand’s financial regulator to discuss a recovery plan. By November, the platform was in advanced discussions with venture capital fund V Ventures for the sale of a majority stake.Earlier this year, the Thai Securities and Exchange Commission announced an investigation into whether Zipmex breached local rules in its offering of certain digital-asset products. In April, the company filed a request to extend the moratorium period to enable the firm to work towards restructuring. Later that month, it appeared that the V Ventures investment deal had fallen through. By July, the beleaguered firm had sued the investor for breach of contract.The ongoing challenges faced by Zipmex underscore the complex landscape and regulatory scrutiny surrounding cryptocurrency exchanges in various jurisdictions.

BitMEX Launches Bespoke Service in Hong KongSeychelles-based cryptocurrency exchange and derivative trading platform BitMEX announced on Monday that it is launching a dedicated virtual asset service for its Hong Kong customers.The exchange published a blog post to its website in which it said that it is in the process of launching “BitMEX Hong Kong,” a dedicated service offering that will be set up on a transitional basis initially. The company is currently in the process of securing a virtual asset service provider (VASP) license from the Hong Kong regulator, the Securities Futures Commission (SFC). Licensing becomes effective in the Chinese autonomous territory on June 1.Photo by Karolina Grabowska on PexelsDedicated mobile appAmong the features the exchange intends to offer its Hong Kong-based customers is a bespoke app, catering specifically to users in the city. The platform will offer Hongkongers the ability to buy and sell cryptocurrencies with eleven spot trading pairs. From an on-boarding and off-boarding perspective, the firm will facilitate the conversion of cryptocurrencies into over thirty fiat currencies.The company is looking to add value by offering additional services such as portfolio management and real-time deposits and withdrawals. BitMEX plans to enable additional functionality such as watchlists and detailed real-time data. Both of these features will enable service users to identify and follow crypto market trends.Licensing preparationsWhile the offering attempts to meet the specific needs of Hongkongers, it's likely that the main motivation relates to VASP licensing. The regulatory requirements in Hong Kong are likely to have distinct facets that would necessitate the company to tease out its service to Hong Kong citizens from its global platform.The SFC has indicated on Tuesday that it will enable crypto trading for retail investors. Notwithstanding that, it’s not doing that without the incorporation of several measures to protect the interests of retail users. Any promotions or incentives that lead a marketing effort with free gifts, and this will likely include token airdrops, will be prohibited.Minimum capital liquidity requirements are being set. Furthermore, client assets will have to be segregated from exchange assets, although the Commission doesn’t mind if the VASP simply segregates said funds itself or does so by way of using an escrow service.Stephan Lutz, acting CEO and group CFO at Bitmex, commented on the development: “We are optimistic that Hong Kong will achieve its ambition of becoming a world-leading Web3 role model city and potentially the Web3 hub for China in years to come.”On May 29, the firm will transfer existing Hong Kong-based customers from its global platform to its new affiliated Hong Kong entity, HDR BMEX Limited. Remaining account balances will be transferred over on that date. There will be no requirement for Hong Kong-based users to undertake additional KYC (know-your-customer) checks or account verification.Earlier this month, the exchange added two additional digital assets ($SUI & $PEPE) to its range of available perpetual contracts.

Military Bank (MB Bank), a subsidiary of Vietnam’s Ministry of National Defence and a top-five bank in Vietnam serving 33 million customers, has partnered with South Korea’s Dunamu to launch the Southeast Asian nation’s first domestic digital asset exchange. Dunamu is the operator of Upbit, South Korea’s largest cryptocurrency exchange. In a statement published on its website on Aug. 13, Dunamu outlined that the two companies had signed a memorandum of understanding (MOU) with the objective of forging a technical partnership to foster Vietnam’s virtual asset market. With that overarching aspiration, the companies plan to establish a digital asset exchange. The deal was signed on Aug. 12 at the Korea-Vietnam Business Forum, an event that was held at the Lotte Hotel in Seoul. Through Upbit, Dunamu has considerable experience and know-how in the crypto exchange business. Its purpose in this partnership is to bring that ability and Upbit’s technology to the establishment of a new exchange in Vietnam.Photo by Peter Nguyen on UnsplashDunamu CEO Oh Gyeong-seok commented on the development, stating: “Vietnam's potential is shown by the more than 20 million virtual asset holders, annual trading volume of more than $800 billion and the inflow of global top 5 blockchain assets.” The Dunamu CEO added that when Vietnam’s proven growth potential meets the Upbit model, it will provide an opportunity to go further than the creation of a crypto exchange, with the development and design of “the entire national digital financial infrastructure based on trust.” Growing and developing Vietnam’s digital financial marketThis aspiration was shared by Military Bank Chairman Liu Zongtai, who stated: “In the future, Vietnam and Korea, Military Bank and Upbit will work together to grow and develop Vietnam's digital financial market as reliable cooperation partners.” As well as sharing its technology and infrastructure, Dunamu will also advise the company on matters such as regulatory compliance and investor protection. Vietnam has previously been hailed as a market that is seeing a significant level of crypto adoption. According to Statista, the market is expected to experience significant growth in the coming years. Crypto user penetration has been forecast to reach over 21% by 2026. The Vietnamese government has also been putting things in order to accommodate crypto assets. In June, the Vietnamese National Assembly passed the Digital Technology Industry Law. The legislation goes some way in providing regulatory clarity, with the categorization of virtual assets and crypto assets. Last October, the authorities set out a blockchain strategy for the Southeast Asian nation, with the aspiration of achieving regional leadership relative to the digital assets sector by 2030. Upbit is a significant player in the crypto sector. According to CoinMarketCap data, it’s the fourth-largest spot exchange platform globally, measured in terms of trading volume. For the month of July, it achieved a trading volume of $110.21 billion, trailing Bitget at $126.05 billion and Bybit at $122.3 billion, while Binance led the market with $683.41 billion.