After Zipmex stopped withdrawals in July, the regulator filed a police complaint against Zipmex.
According to a Thursday press release, the Securities and Exchange Commission of Thailand (SEC), crypto companies are prohibited from offering lending and staking services, .
According to the release, the decision to ban “depository service”, which includes paying returns for depositors, was taken to protect traders against the risks associated crypto lenders.
The ban comes into place after well known crypto lenders struggle in the market downturn
Numerous crypto lenders, including Celsius Network, Babel Finance and exchanges that offer lending services, have frozen withdrawals in the last few months due to a downturn of the crypto market. Bitcoin and ethereum lost over 50% since the beginning of the year.
Zipmex is one of the troubled exchanges that stopped withdrawals . It has entities in Singapore and Thailand as well as Australia and Indonesia.
After Zipmex failed to provide necessary transactional information by a specified deadline, the Thai SEC filed an official complaint against Zipmex . The regulator also asked Zipmex to clarify the July withdrawal freeze.