- Thai SEC revokes Zipmex’s operating licenses
- Zipmex ordered to return client assets
- Regulatory scrutiny following crypto market downturn
- Zipmex’s financial and operational deficiencies
Regulatory Action Against Zipmex
Thailand’s Securities and Exchange Commission (SEC) has revoked the operating licenses of Zipmex, a cryptocurrency exchange, after months of regulatory scrutiny. On June 11, the SEC announced that as of May 28, Zipmex was no longer authorized to function as a digital asset exchange and broker in Thailand. This decision followed an earlier directive in February, mandating Zipmex to halt services to Thai users until it could address its financial and operational shortcomings. Despite these measures, the finance minister concluded that Zipmex remained non-compliant with the orders.
The SEC emphasized that Zipmex must return assets to its clients or act according to their requests. In cases where clients do not specify their requests or claim their assets, Zipmex is required to secure the unclaimed assets in a trusted system and provide detailed reports on the proceedings to the SEC.
Impact of the Crypto Market Downturn
The revocation of Zipmex’s licenses is part of the broader fallout from the 2022 crypto market downturn, which placed the exchange under intense regulatory scrutiny. Zipmex faced investigations related to its acquisition by V Ventures and potential unauthorized operations in Thailand. In November 2023, Zipmex suspended trading to comply with regulations, a move that highlighted the ongoing challenges in the crypto sector.
First licensed by the Thai SEC in 2020, Zipmex filed for debt relief two years later, with reported customer debts amounting to $97 million. As of November 2023, Zipmex proposed offering creditors $0.0335 per dollar for initial claims, signaling efforts to restructure amidst financial difficulties.