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12/06/24
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Thailand SEC Announces Revocation of Zipmex’s Licenses
Two days ago, Thailand’s Securities and Exchange Commission (SEC) published a media release noting that crypto exchange has a financial condition that may affect clients. Likewise, the licensed exchange’s management structure and personnel are considered inappropriate and cannot run the business efficiently and responsibly based on relevant rules, conditions and procedures.
Hence, the SEC announced the revocation of the firm’s licenses, including the digital asset exchange and broker licenses, effective from May 28, 2024. The crypto exchange has been directed to return clients’ assets or go ahead as requested by its clients.
Zipmex is required to deposit unclaimed assets in a trusted and secure system and must report its proceedings, especially for clients who do not submit requests or claim their assets.
However, according to the SEC, the crypto exchange remains a limited firm with corresponding rights, responsibilities and liabilities, so it may be subject to lawsuit. The revocation comes after a few meetings over the past several months regarding the firm’s ability to operate efficiently.
In February, Thailand’s SEC announced its resolution to propose the revocation of Zipmex digital asset business license. They decided to recommend that the Ministry of Finance revoke its license.
The SEC board had a meeting on February 1, and it was decided that the crypto exchange’s operations will be suspended if it does not fully rectify its operations within 15 days. Unfortunately, Zipmex was unable to do as expected before the deadline, so the commission came up with new decisions in its meeting on February 21.
The firm suspended trading seven months ago, noting that it was trying to ensure compliance with regulations. Two years after obtaining its first license in 2020, Zipmex filed for debt relief, reportedly owing customers $97 million and then initiated its restructuring efforts.
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