Thomas Daniels
Thai cryptocurrency exchange Zipmex has had its business license revoked by the Thai Securities and Exchange Commission (SEC) after failing to comply with regulatory orders.
In a June 11 press release, the SEC outlined that the decision to revoke Zipmex’s license stemmed from concerns over the exchange’s financial instability and subpar management practices. Despite multiple directives to address these issues, Zipmex did not meet the SEC’s compliance requirements within the allotted timeframe. Consequently, the SEC advised Thailand’s Ministry of Finance to revoke Zipmex’s operating license.
The Ministry of Finance has mandated that Zipmex halt all cryptocurrency operations immediately and facilitate the return of customer assets within 15 days. Should customers not claim their assets within this period, Zipmex is required to store the assets within 30 days and report on the process to the SEC. As of the latest updates, Zipmex has not issued any public statements regarding the license revocation.
Founded in 2018 and headquartered in Singapore, Zipmex halted its trading activities in Thailand in November 2023. The company faced penalties from the SEC for allegedly misusing a crypto custodian service and directing clients to its Singaporean arm, Zipmex Pte, creating potential conflicts of interest. Besides Thailand, Zipmex also operates in Australia and Indonesia.
Further compounding its regulatory woes, Zipmex’s rehabilitation strategy has faced significant obstacles due to losses exceeding $50 million. These losses are attributed to the exchange’s exposure to the bankruptcies of Babel Finance and Celsius Network in 2022.
