After a period of close examination by regulators, the Securities and Exchange Commission (SEC) of Thailand has decided to revoke two operational licenses for cryptocurrency exchange Zipmex.
In an announcement made on June 11, the SEC declared that Zipmex was no longer permitted to function as a digital asset exchange and broker for cryptocurrencies in Thailand starting from May 28. The regulator had instructed Zipmex to halt its services to Thai users back in February until it could address its financial and operational shortcomings. However, the finance minister found that the exchange had failed to comply with the directives.
According to the SEC, “Zipmex is obligated to return assets to its clients or follow their instructions. In cases where clients do not provide instructions or claim their assets, Zipmex must store the unclaimed assets in a secure system and provide detailed reports of the process to the SEC promptly.”
Following the downturn in the crypto market in 2022, Zipmex came under the scrutiny of the SEC. The exchange was investigated over its acquisition by V Ventures and suspicions of operating in Thailand without proper regulatory authorization. Zipmex ceased trading in November 2023, citing efforts to adhere to regulations.
Initially granted a license by the Thai SEC in 2020, the exchange, based in Singapore, filed for debt relief two years later with reported debts amounting to $97 million owed to customers. By November 2023, Zipmex had expressed its willingness to offer creditors $0.0335 per dollar for their claims as part of a restructuring initiative.
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