Crypto exchange Zipmex has become the centre of a new Securities and Exchange Commission of Thailand (Thai SEC) investigation, reports have found.
According to Bloomberg, Thailand has been monitoring Zipmex for suspicious activities that could breach local regulations. Such restrictions apply to digital asset service providers operating in the country.
The ongoing developments between the two entities began later in 2022. On 7 September the same time, the government agency filed police reports stating Zipmax provided “incomplete” details on its compliance materials.
The organisation has set a 12 January deadline to determine whether it operates as a “digital asset fund manager without permission.” The cryptocurrency exchange could be forced to obtain permits to continue functioning in the Southeast Asian nation.
Lock Out, Crack Down on Crypto?
The news comes as Thoresen Thai Agencies PCL subsidy V Ventures aims to buy out Zipmex for roughly $100 million USD. This could potentially unlock client accounts in April this year with acquisition funds.
Financial woes hit the embattled cryptocurrency exchange on 21 July last year, forcing the firm to block access to accounts and funds. Subsequently, the firm reopened withdrawals the following day.
The incident exposed nearly $53 million USD to risk, hitting crypto lending firms Celsius and Babel Finance. This has prompted Thailand, Australia, Israel, South Korea, the United States, and others to crack down on crypto providers with tougher regulations.
Governments have voiced concerns amid the ongoing bear crypto market and collapse of now-bankrupt crypto firm FTX, sparking calls for tightened restrictions.
