Thai SEC Revokes Zipmex’s Licenses for Regulatory Violations

Last Updated on June 12, 2024

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Key Takeaways:

  • License Revocation: Thailand’s SEC has revoked Zipmex’s licenses as a digital asset exchange and cryptocurrency broker, effective from May 28, 2024.
  • Mandated Actions: Zipmex must return assets to clients or follow their instructions; unclaimed assets should be securely deposited and reported to the SEC.
  • Operational Failures: Zipmex faced regulatory scrutiny and financial issues, halting trading in November 2023, and was acquired by V Ventures after the 2022 crypto market downturn.

Thailand’s Securities and Exchange Commission (SEC) has revoked two operating licenses for the cryptocurrency exchange Zipmex.

The SEC announced on June 11 that Zipmex was no longer authorized to operate in Thailand as a digital asset exchange and cryptocurrency broker, effective from May 28.

This decision follows a February order for Zipmex to suspend its services and address financial and operational issues, which the exchange failed to rectify.

The SEC has mandated Zipmex to return assets to its clients or act according to their clients’ requests.

For unclaimed assets, the exchange must deposit them in a secure system and report its actions to the SEC promptly.

The regulatory scrutiny on Zipmex intensified after the 2022 crypto market downturn, leading to an investigation into its operations and an acquisition by V Ventures.

Zipmex had halted trading in November 2023 to comply with regulations.

Initially licensed in 2020, Zipmex sought debt relief two years later, owing customers $97 million and offering creditors a fraction of their claims during restructuring efforts.

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