Company Explanation About Zipmex Files Application For Moratorium In Singapore. Jakarta Southeast Asia-focused crypto exchange Zipmex said it had applied for a Moratorium in Singapore. Zipmex is the latest victim of a global downturn in digital currencies.
Singapore-based Zipmex resumed the withdrawal feature last week, a day after suspending it on Wednesday (20/7/2022), and said it was working to address its USD 53 million exposure to crypto lender Babel Finance and Celsius.
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Reporting from Channel News Asia, Saturday (30/7/2022), Zipmex lawyers filed five applications on July 22 seeking a moratorium to prohibit legal proceedings against Zipmex for up to six months.
Under Singapore law, such filings give the company an automatic moratorium for 30 days, or until the Singapore Courts make a decision on the application.
Zipmex, which has operations in Singapore, Thailand, Indonesia and Australia according to its website, is the latest in a string of crypto players globally to have a hard time.
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Zipmex Explanation
In response to the large amount of information circulating regarding this matter, Zipmex’s management has found several independent media and reports that characterize this Moratorium application as a process of liquidation or bankruptcy from the Company.
Company Explanation About Zipmex Files Application For Moratorium In Singapore “This news is not true. Zipmex has filed moratorium requests under Section 64 of the 2018 Insolvency, Restructuring and Dissolution Act,” Zipmex explained in a press release received by Liputan6.com, Saturday (30/7/2022).
“This moratorium provides an opportunity for Zipmex Companies to restructure their debts,” the company continued.
Zipmex explained that the Singapore Moratorium will provide protection to Zipmex companies against the actions of creditors and third parties (including liquidation processes) while Zipmex is still operating.
This will give Zipmex an opportunity to focus on securing investment and liquidity to address the current liquidity situation.
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“We will update the information in accordance with the progress of the application process. Throughout this process, we will continue to communicate openly with our community, local regulators where we operate, and affected parties,” the Zipmex notice concluded.
The International Monetary Fund (IMF) has recently again warned investors about the risks that will occur in the crypto industry. This time the warning was delivered by the Director of Monetary and Capital Markets of the IMF, Tobias Adrian.
In an interview with Yahoo Finance Wednesday, July 27, 2022, Adrian warned of further selling pressure that would ensue in the crypto market and that more crypto tokens would fail.
“We could see further sell-off, both in crypto assets and in riskier asset markets, such as stocks. There could be further failures of some coin offerings in particular, some algorithmic stablecoins hit the hardest, and others that could fail,” he said. Adrian quoted from Bitcoin.com, Friday, July 29, 2022.
Adrian also warned about the potential for fiat-backed stablecoins to collapse, something Treasury Secretary Janet Yellen and the Federal Reserve have also warned about.
Adrian also discussed the stablecoin Tether (USDT), he said there are some vulnerabilities there because they are not supported one to one.
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“Some stablecoins are backed by assets that are somewhat risky. Of course it is a vulnerability that stablecoins are not fully backed by assets such as cash,” said Adrian.
Even so, Adrian does not see an immediate threat from crypto that could create a financial crisis like the one that occurred in 2008.
“What is very worrying in the 2008 crisis is that banks are very exposed to shadow banks, and we don’t see bank exposure to shadow banks through crypto at this time,” said Adrian.
Regulation Required
Company Explanation About Zipmex Files Application For Moratorium In Singapore. In addition, the IMF Director argues, regulation is needed to protect investors and the financial system, he pays attention to this because of the large number of cryptocurrencies circulating today.
“Managing the coin itself will be difficult, but managing entry points such as exchanges and wallet providers to invest in the coin is something that is very concrete and very feasible,” concluded Adrian.
