The Securities and Exchange Commission Board of Thailand (SEC) has submitted a proposal to the Finance Ministry to cancel the digital asset business license of crypto exchange Zipmex, according to an announcement made on February 23. This represents the latest in a series of setbacks faced by the exchange in Thailand.
During a meeting on February 21, the SEC also decided that Zipmex’s business suspension, which was imposed on February 1, would remain in effect. Clients would be able to request the return of their assets on the exchange until March 11. After this date, Zipmex would be required to place any unclaimed assets in a “trusted and secure system” and report it to the SEC. The agency emphasized that this action was taken as Zipmex had failed to meet the deadline to increase its net capital and enhance its personnel and management structure. The SEC deemed these improvements to be “inappropriate and insufficient.” On February 1, Zipmex was given 15 days to comply with the SEC, and business operations were ordered to be suspended at that time. On February 8, the SEC announced that it was charging former Zipmex CEO Akalarp Yimwilai with corruption.
The exchange encountered difficulties in 2022 when it suspended withdrawals for several weeks on July 20 due to concerns regarding its exposure to crypto lenders Babel and Celsius, both of which were facing bankruptcy. After three days, Zipmex restored access to Trade Wallets, but Z Wallets remained blocked until the following year.
In 2022, Coinbase attempted to acquire Zipmex but was unsuccessful. Instead, Coinbase made a “strategic investment” of an undisclosed amount. However, in an August report, Coinbase was not listed among the exchange’s top three investors.
On July 27, 2022, Zipmex filed for debt relief in Singapore. In September 2022, the SEC recommended legal action against Zipmex for failing to provide information under the country’s Digital Assets Act. In January of the following year, as it was preparing for acquisition by Thai investors V Ventures, Zipmex faced further scrutiny from the SEC. However, this deal also fell through.
Zipmex was granted a license by the SEC in January 2020. The exchange operates in Thailand, Indonesia, Singapore, and Australia.