Thai cryptocurrency exchange Zipmex has had its business license revoked after the Securities and Exchange Commission (SEC) determined that the exchange repeatedly failed to adhere to regulatory orders.
Regulatory Action and License Revocation
In a June 11 press release, the SEC announced that the decision to revoke Zipmex’s license stemmed from concerns about the company’s financial instability and inadequate management. Despite multiple directives to address these issues, Zipmex did not comply within the specified timeframe. Consequently, the SEC recommended that Thailand’s Ministry of Finance revoke the exchange’s operating license.
Immediate Operational Cessation and Asset Transfer Mandate
Following the Ministry’s decision, Zipmex is required to halt all cryptocurrency operations immediately. The exchange must also transfer customers’ assets back to them within 15 days. Should customers fail to claim their assets within this period, Zipmex is mandated to store the assets within 30 days and report each step of the process to the SEC. As of now, Zipmex has not issued any public statements regarding the license revocation.
Background and Broader Issues
Founded in 2018 and headquartered in Singapore, Zipmex ceased its trading operations in Thailand in November 2023. The SEC had previously penalized the exchange for alleged misuse of a crypto custodian service and for directing customers to the Singapore-based exchange Zipmex Pte, which posed a conflict of interest. Zipmex also operates in Australia and Indonesia.
In addition to its regulatory challenges in Thailand, Zipmex’s rehabilitation plan has faced setbacks due to significant financial losses. The company reportedly lost over $50 million following its exposure to the bankruptcies of Babel Finance and Celsius Network in 2022.
Conclusion
The revocation of Zipmex’s license by Thai regulators underscores the importance of compliance in the cryptocurrency industry. As Zipmex navigates this regulatory and financial turbulence, its future operations in Thailand remain uncertain. The exchange’s customers are advised to claim their assets promptly to ensure their security.
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