Regulation
Thai SEC revokes Zipmex license due to repeated regulatory failures
The Thai Securities and Exchange Commission (SEC) has decided to withdraw business license of the cryptocurrency exchange Zipmex due to persistent non-compliance with the rules.
Thai regulators revoke Zipmex #crypto Licence
Embattled crypto exchange Zipmex has lost its trading license after Thai authorities found the exchange repeatedly failed to comply with orders. pic.twitter.com/kMRGkQ7Kcr
— Bullish Singh! 🔥 (@BullishSingh_) June 11, 2024
On June 11, the SEC said Zipmex’s financial problems and mismanagement were its main problems, which influenced this decision. Even though the above issues were repeatedly mentioned as needing to be addressed, Zipmex failed to act in a timely manner. Therefore, the SEC proposed to suspend Zipmex’s license to the Thai Ministry of Finance.
Such a move by the Ministry of Finance will force Zipmex to suspend all its cryptocurrency operations. Additionally, Zipmex is required to return all customer assets to customers within 15 days. If customers do not claim their assets within the stipulated time, Zipmex is allowed to store the assets within 30 days and the company must report each step to the SEC. At the time of the announcement, Zipmex did not specify the revocation or what actions will follow.
History of Regulatory Issues
Zipmex, founded in 2018 and based in Singapore, has had problems with Thai regulators. The exchange closed its trading operations in Thailand in November 2023 after receiving sanctions from the SEC. These sanctions were associated with alleged abuse of a cryptocurrency custodian service and referral of its clients to its Singapore-based exchange, Zipmex Pte, which clearly constituted a conflict of interest. In addition to its activities in Thailand, Zipmex is also present in Australia and Indonesia.
Zipmex’s financial situation was worsened by the bankruptcies of Babel Finance and Celsius Network in 2022, where the company lost more than $50 million. This financial instability has suspended Zipmex’s rehabilitation plan and made the company’s regulatory and operational status even more uncertain.
However, the role that the SEC recently played in overturning Zipmex License has also been relevant to its management and financial activities, showing that the cryptocurrency exchange industry in Thailand is highly regulated.