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Crypto exchange Zipmex resumes withdrawals

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Zipmex, this Southeast Asia-focussed crypto exchange said that it will be resuming withdrawals soon after a suspension the day before. It was working for addressing its $53 million exposure to cryptocurrency lenders Celsius and Babel Finance. It said that it was conversing with Babel Finance which suspended all withdrawals in the month of June for resolving its exposure of $48 million to the cryptocurrency services company. A spokesperson of Babel Finance said it has been actively working along with Zipmex for avoiding losses of customers. It said that it will be writing off its exposure of $5 million to Celsius. The company mentioned in one statement that it has started to explore every available channel. It includes raising funds, legal action as well as restructuring.

Zipmex crypto exchange declared the resumption of withdrawals after they declared that withdrawals got halted because of the current cryptocurrency market meltdown. Yet only meltdowns from the Trade Wallet resumed. It is one of the wallets of the exchange. Crypto exchange Zipmex makes use of two assets such as Trade Wallet and Z Wallet. The first one is used by all users for depositing cryptocurrency assets and fiat for trading on the platform. Z Wallet lets users earn bonuses along with rewards once their funds get deposited.

Zipmex which operates in Singapore, Indonesia, Thailand, and Australia is the latest one among the crypto players worldwide to run into challenges following a sharp market sell-off that began in May with the collapse of Luna and TerraUSD, the two paired crypto tokens.Start your bitcoin registration for bitcoin trading.

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Z Wallet operations will remain closed

The firm said in one tweet that it suspended all withdrawals with one executive of its Thai affiliate citing difficulties of liquidity at Celsius and Babel Finance as the factors behind such a move.

As per the declaration, withdrawals will be only available on the Trade wallet. Z Wallet operations will remain closed. All trade and deposits will stay disabled until further notice. It was after the crypto platform said in a post on social media that it is exploring every available option and planning for restoring withdrawals from a few wallets.

Zipmex recovers a few of its funds

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Zipmex had one exposure of $5 million to Celsius and to Babel Finance it was $48 million. Earlier it halted withdrawals due to insolvency pressure. Yet Zipmex noted that it recovered a few of the assets from its partners. The company mentioned that it retrieved the majority of its assets and funds that were deposited historically with its deployment partners. The company has been working actively for resolving all situations for the rest outstanding assets that were not materially adverse effects on their operations.

Withdrawals were resumed lately in Thailand except for transfers from an investment product. The company said that withdrawals will get restored in some other regions later. The tweet of the company cited all volatile conditions of the market along with the resulting financial challenges of their primary business partners for this suspension.

Celsius which is US-based filed for protection in Chapter 11 on 13th July. It listed a deficit of $1.19 billion on its balance sheet. Immediately Celsius did not respond to any request for comments. Both Babel Finance and Celsius are among many cryptocurrency players that fell into challenges in current months.

Three Arrows Capital the cryptocurrency fund that is Singapore-based is in liquidation prompting expectations in the cryptocurrency sector of Singapore of bigger regulatory scrutiny and further restructuring. The Monetary Authority of Singapore’s spokesperson said the regulator has been assessing one app for a crypto service license by Zipmex. It will engage with the firm on the current developments. It will be including all decisions of suspending withdrawals, as part of such an assessment. Zipmex has been operating under one exemption while it is awaiting word on its app.

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Zipmex already mentioned that it has been cooperating with the Thai Securities Exchange Commission. The government of Indonesia said that it will be asking Zipmex Indonesia for ensuring that cryptocurrency assets is safeguarding from the effect of such a situation.

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