Thailand’s Securities and Exchange Commission (SEC) has revoked two operating licenses for the cryptocurrency exchange Zipmex after months of regulatory scrutiny.
In a June 11 announcement, the SEC declared that as of May 28, Zipmex is no longer authorized to operate as a digital asset exchange and broker for cryptocurrencies in Thailand.
The regulatory body had previously ordered Zipmex to halt its services to Thai users in February to address its financial and operational deficiencies.
However, the finance minister concluded that the exchange had not complied with these directives.
The SEC emphasized that Zipmex must return assets to its clients or follow their requests.
For clients who do not specify their requests or claim their assets, Zipmex is required to deposit the unclaimed assets into a trusted and secure system.
Furthermore, the exchange must report each step of these proceedings to the SEC without delay.
Zipmex has been under regulatory scrutiny since the crypto market downturn in 2022.
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The SEC’s investigation included examining an acquisition by V Ventures and whether Zipmex had been operating in Thailand without the necessary regulatory approval.
In November 2023, Zipmex suspended trading, citing regulatory compliance as the reason for this decision.
Zipmex, which is based in Singapore, received its first license from the Thai SEC in 2020.
However, two years later, the exchange filed for debt relief, reportedly owing customers $97 million.
As part of its restructuring efforts, Zipmex proposed offering creditors $0.0335 per dollar for initial claims as of November 2023.
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