Thailand SEC Revokes Zipmex License Over Repeated Regulatory Failures

The Thai Securities and Exchange Commission (SEC) has decided to pull the business license of the Zipmex cryptocurrency exchange due to persistent non-observance of the rules.

Thai regulators revoke Zipmex's #crypto license

Beleaguered crypto exchange Zipmex has lost its business license after the Thai authorities found that the exchange had repeatedly failed to comply with orders pic.twitter.com/kMRGkQ7Kcr

— Bullish Singh! 🔥 (@BullishSingh_) June 11, 2024

On June 11, the SEC stated that Zipmex’s financial problems and poor management are its biggest issues, which influenced this decision. Even though the above issues have been repeatedly mentioned as needing fixing, Zipmex did not act within the given time frame. Therefore, the SEC proposed suspending Zipmex’s license to Thailand’s Ministry of Finance.

Such a move from the Ministry of Finance will force Zipmex to suspend all its cryptocurrency operations. Also, Zipmex is required to return all customer assets to the customers within 15 days. If customers do not claim their assets within the given time, Zipmex is authorized to store the assets within 30 days, and the company has to report each step to the SEC. At the time of the announcement, Zipmex has not stated the revoking or the actions that will follow.

History of Regulatory Issues

Zipmex, founded in 2018 and based in Singapore, has had problems with the Thai regulators. The exchange closed trading operations in Thailand in November 2023 after receiving penalties from the SEC. These penalties were associated with the alleged abuse of a crypto custodian service and for referring its customers to its Singapore-based exchange, Zipmex Pte, which was a clear conflict of interest. Besides operating businesses in Thailand, Zipmex is also present in Australia and Indonesia.

Zipmex’s financial situation has been worsened by the failures of Babel Finance and Celsius Network in 2022, when it lost more than $50 million. This financial instability has put Zipmex’s rehabilitation plan on hold and made the company’s regulatory and operational status even more uncertain.

However, the role that the SEC has recently taken in rescinding Zipmex’s license has also been pertinent to its management and financial activities, which shows that the cryptocurrency exchange industry in Thailand is highly regulated.