The Zipmex cryptocurrency exchange has denied users the rights to directly take custody of their coins citing volatile market conditions.
“Due to a combination of circumstances beyond our control, including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice,” the firm stated on twitter.
The move is not isolated or a first of its kind. Recently several other crypto platforms have taken on similar defensive stances, namely Celsius Network and Babel Finance.
Reasons used to justify the moves have included market turbulence, low investor confidence and the resultant risks.
Earlier this month, Celsius filed for Chapter 11 bankruptcy protection in the U.S Bankruptcy court for the southern district of New York.
After being established in 2018, Zipmex operates in Thailand, Indonesia, Singapore and Australia.
Last year, Zipmex raised $41 million with funds from the Bank of Ayudhya, a leading bank in Thailand.
Even Coinbase this June was alleged to make key capital injections into Zipmex. A series B+ funding was in the works to boost valuation to $ 400 million.
Despite this, there are fears that the company will fold. The company’s price chart has plunged a massive 33.8% just 24 hours after the announcement.