The Securities and Exchange Commission Board of Thailand (SEC) announced on February 23 that it has submitted a recommendation to the Finance Ministry to revoke the digital asset business license of crypto exchange Zipmex. This is the latest setback for the exchange in Thailand.
During a meeting on February 21, the SEC also decided to extend Zipmex’s business suspension, which was imposed on February 1. Clients will be able to request the return of their assets on the exchange until March 11. After that, Zipmex will be required to place unclaimed assets in a secure system and report it to the SEC. The agency emphasized that this action was taken because Zipmex failed to meet the deadline to increase its net capital and improve its personnel and management structure, which the SEC deemed inappropriate and insufficient. On February 1, Zipmex was given 15 days to comply with the SEC, but instead, it was ordered to suspend its business operations. Subsequently, former Zipmex CEO, Akalarp Yimwilai, was charged with corruption on February 8.
The troubles for Zipmex began in 2022 when it suspended withdrawals for several weeks due to concerns about its exposure to crypto lenders Babel and Celsius, both of which were facing bankruptcy. While access to Trade Wallets was restored after three days, Z Wallets remained blocked until the following year.
In 2022, Coinbase attempted to acquire Zipmex but was unsuccessful. However, Coinbase did make a strategic investment of an undisclosed amount in the exchange, although it was not listed among the top three investors in a report from August.
On July 27, 2022, Zipmex filed for debt relief in Singapore. In September of the same year, the SEC recommended police action against Zipmex for failing to provide information under the country’s Digital Assets Act. In January, as Zipmex prepared for acquisition by Thai investors V Ventures, it faced further scrutiny from the SEC. However, that deal also fell through.
Zipmex obtained a license from the SEC in January 2020 and currently operates in Thailand, Indonesia, Singapore, and Australia.