Thailand’s Securities and Exchange Commission (SEC) has revoked the operating licenses of cryptocurrency exchange Zipmex, dealing a blow to the Singapore-based platform. The announcement, made on June 11th, follows months of regulatory scrutiny surrounding Zipmex’s financial health and adherence to regulations.
According to the SEC, Zipmex is no longer authorized to operate as a digital asset exchange or broker in Thailand as of May 28th. This action comes after the regulator ordered Zipmex to suspend services to Thai users in February. The suspension was intended to allow the exchange time to “correct its financial position and operational deficiencies.” However, the Thai Finance Ministry ultimately determined that Zipmex remained “in contravention” of these orders.
The SEC has mandated that Zipmex return assets to its Thai clients “according to their requests.” This includes facilitating withdrawals for users who wish to retrieve their cryptocurrency holdings. For unclaimed assets, Zipmex is required to deposit them in a “trusted and secure system” and report the process to the SEC.
The regulatory action follows a tumultuous period for Zipmex. The exchange came under the SEC’s microscope after the 2022 crypto market crash. Investigations reportedly focused on a potential acquisition by V Ventures and whether Zipmex had operated in Thailand without proper licensing. In November 2023, Zipmex suspended trading, citing its commitment to regulatory compliance.
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Licensed by the Thai SEC in 2020, Zipmex’s financial woes became apparent two years later when it filed for debt relief. The exchange reportedly owed its Thai customers a staggering $97 million. As part of its restructuring efforts, Zipmex proposed offering creditors a mere 3.35 cents per dollar on their initial claims in November 2023.
The SEC’s decision to revoke Zipmex’s licenses casts a shadow over the future of the exchange in Thailand. Thai users with assets on the platform are urged to follow Zipmex’s instructions for claiming their holdings. This incident also highlights the importance of robust regulatory frameworks to ensure the stability and transparency of cryptocurrency exchanges.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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