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Zipmex, a Singapore-based cryptocurrency exchange with a significant presence in Thailand, has been dealt a severe blow after the country's Securities and Exchange Commission (SEC) revoked its operating license, The Bangkok Post reported on Wednesday.
This action follows a period of intense scrutiny by the SEC, which identified financial instability and management deficiencies at Zipmex.
The troubles for Zipmex began in late 2022 when the crypto market downturn triggered regulatory scrutiny from the SEC. There were reports of an investigation into an acquisition by V Ventures and questions around whether Zipmex had been operating without the necessary regulatory approvals.
Facing mounting pressure, Zipmex suspended trading operations in Thailand in November 2023, citing a need to comply with regulations. This move did little to appease the SEC, who issued orders for Zipmex to rectify its financial shortcomings and operational issues. However, Zipmex failed to meet the SEC's demands within the allocated timeframe, The Bangkok Post reported.
As a consequence of these repeated violations, the Thai Ministry of Finance revoked Zipmex's digital asset exchange and brokerage licenses, effective May 28, 2024. The SEC has mandated that Zipmex return all client assets within 15 days. The current status of these client assets and the process for their return remain unclear, as Zipmex has yet to make a public statement regarding the license revocation or the asset return process.
Blockhead
Financial regulator SEC Thailand has been clamping down on the digital asset industry amid the sector's growth, ordering a crackdown on unauthorized cryptocurrency platforms operating in the country, in April 2024. It issued new regulations for custody providers in May 2023, and previously banned crypto firms from offering staking and lending services and established stricter crypto advertising rules.
