Thailand revokes Zipmex’s crypto license due to consistent regulatory failures

Thailand’s Securities and Exchange Commission (SEC) has revoked Zipmex’s operating license after the crypto firm failed to meet regulatory requirements. According to local media, the cancellation, effective May 28, follows concerns over the firm’s financial “health” and its management structure, which could potentially cause harm to customers.

Also read: Thailand’s SEC moves to withdraw license from Zipmex

A recent SEC report showed some deficiencies within Zipmex, which could compromise its ability to operate the business effectively. The firm held licenses as a digital asset trading center and broker but exhibited financial and managerial issues  that unfortunately violated regulatory requirements.

SEC ordered Zipmex to resolve its affairs

In January this year, SEC reportedly ordered Zipmex to put its house in order but the company failed to do so within the agreed timeframe. Consequently, SEC suspended Zipmex’s crypto business in February. SEC also ordered the company to return assets to customers upon request and to address other operational challenges that affected the business.

Another evaluation was carried out on February 21, in which SEC discovered the firm had disregarded its orders and failed to make the required corrections per the regulator’s orders.

A recommendation was made to the Minister of Finance to revoke Zipmex’s digital asset business operation.

The regulator has now compelled the company to return assets to customers within 15 days. According to the requirements, if customers fail to claim their assets within 15 days, Zipmex is supposed to safeguard the assets within 30 days and promptly report to SEC every step of the way.

Thai regulators revoke Zipmex's #crypto license

Beleaguered crypto exchange Zipmex has lost its business license after the Thai authorities found that the exchange had repeatedly failed to comply with orders pic.twitter.com/kMRGkQ7Kcr

— Bullish Singh! ???? (@BullishSingh_) June 11, 2024

The exchange’s future had been uncertain

Founded in 2018 and based in Singapore, Zipmex has been on the wrong side of the Thai regulators and repeatedly failed to comply with regulations. In November last year, the exchange closed trading in Thailand after SEC imposed some penalties on the company.

Also read: SEC alleges fraud and deception by former Zipmex Thailand CEO

The penalties were about its “alleged abuse of crypto custodian services.” The company also allegedly referred customers to Zipmex Pte, its Singapore-based exchange, resulting in a conflict of interest.

Zipmex also has operations in Australia and Indonesia.

Cryptopolitan reporting by Enacy Mapakame