The Securities and Exchange Commission Board of Thailand (SEC) announced on February 23 that it has submitted a recommendation to the Finance Ministry to revoke the digital asset business license of crypto exchange Zipmex. This is the latest setback for the exchange in Thailand.
During a meeting on February 21, the SEC also decided to continue the business suspension of Zipmex, which was imposed on February 1. Clients will be able to request the return of their assets on the exchange until March 11. After this date, Zipmex will be required to place unclaimed assets in a secure system and report it to the SEC. The agency stated that this action was taken because Zipmex failed to meet the deadline to increase its net capital and improve its personnel and management structure, which the SEC deemed inappropriate and insufficient. On February 1, Zipmex was given 15 days to comply with the SEC and was ordered to suspend its business operations. Former Zipmex CEO Akalarp Yimwilai was charged with corruption by the SEC on February 8.
Zipmex encountered difficulties in 2022 when it suspended withdrawals for several weeks due to concerns about its exposure to crypto lenders Babel and Celsius, which were facing bankruptcy. Although access to Trade Wallets was restored after three days, Z Wallets remained blocked into the following year.
In 2022, Coinbase attempted to acquire Zipmex but was unsuccessful. Instead, Coinbase made a strategic investment of an unspecified amount but was not listed as one of the top three investors in a report in August.
Zipmex filed for debt relief in Singapore on July 27, 2022. In September of the same year, the SEC recommended police action against Zipmex for failing to provide information under the country’s Digital Assets Act. In January, as it was preparing to be acquired by Thai investors V Ventures, Zipmex faced further scrutiny from the SEC. However, this deal also fell through.
Zipmex was granted a license by the SEC in January 2020 and operates in Thailand, Indonesia, Singapore, and Australia.