After a period of intense regulatory scrutiny, Thailand’s Securities and Exchange Commission (SEC) has taken the decision to revoke the operating licenses of cryptocurrency exchange Zipmex.
In an announcement made on June 11, the SEC declared that Zipmex was no longer permitted to function as a digital asset exchange and broker for cryptocurrencies in Thailand since May 28. The regulator had previously instructed Zipmex to halt its services to Thai users back in February, citing the need to rectify financial and operational issues. Despite this directive, the finance minister found that the exchange had failed to comply and was still operating against the SEC’s orders.
“Zipmex is obligated to return assets to its clients or act in accordance with their wishes,” stated the SEC. “In cases where clients do not make any requests or claims for their assets, Zipmex must securely deposit the unclaimed assets and provide a detailed report of its actions to the SEC promptly.”
In the wake of the crypto market downturn in 2022, Zipmex came under the SEC’s radar for scrutiny. The exchange was being investigated over its acquisition by V Ventures and allegations of operating in Thailand without proper regulatory authorization. Zipmex had suspended trading in November 2023, claiming that it was a move to comply with regulatory requirements.
Originally granted a license by the Thai SEC in 2020, the exchange, which is based in Singapore, filed for debt relief two years later, reportedly owing customers a total of $97 million. By November 2023, Zipmex had expressed willingness to offer creditors $0.0335 per dollar for their initial claims as part of its efforts to restructure.
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Thai SEC withdraws Zipmexs licenses due to noncompliance with directives