SEC Recommends Revocation of Zipmex's License Amid Financial and Legal Troubles
Summary:
The Thailand Securities and Exchange Commission (SEC) has recommended the revocation of crypto exchange Zipmex’s trading license due to its failure to increase net capital and revamp its personnel structure. Zipmex, still under business suspension by the SEC since February 1, has until March 11 to allow clients to claim their assets. Beyond this deadline, all unclaimed assets are required to be stored in a secure system. In spite of a potential license revocation, Zipmex could still be subject to legal action. The company has previously faced extinction due to exposure to bankrupt crypto lenders and failing to comply with Thailand’s Digital Assets Act.
The Board of the Securities and Exchange Commission (SEC) in Thailand has suggested that the Ministry of Finance should terminate digital asset company Zipmex's trading permit, according to an announcement on February 23rd. This is the latest blow to the company's Thai operations. Zipmex was instructed to halt operations starting February 1 at a SEC meeting held on February 21. Customers have until March 11 to claim their assets on the exchange. Afterwards, any unclaimed assets will be moved into a 'safe and reliable system' with a report submitted to the SEC. The regulatory body further clarified that despite potentially losing its license, Zipmex retains its legal status and can still be held accountable for its actions. This includes potential legal proceedings.
The SEC's drastic step comes on the back of Zipmex's inability to increase its net capital and overhaul its underperforming human resources and management units. Following a review on February 1st, the SEC gave Zipmex a 15-day deadline to address these issues, resulting in suspension of operations. Eight days later, the SEC leveled corruption charges at former CEO Akalarp Yimwilai.
The shaky situation for Zipmex began in 2022, specifically on July 20, when the company halted all transactions due to issues tied to their interactions with crypto lenders Babel and Celsius, who were both on the brink of going under. Three days later, access was restored to the Trade Wallets, however, the Z Wallets remained inaccessible into the following year.
Despite its troubles with the SEC, crypto giant Coinbase attempted a failed acquisition of Zipmex in 2022, making a subsequent 'strategic investment' of an undisclosed sum. Despite this, Coinbase was not listed amongst the top three investors in an August report. On July 27, 2022, Zipmex requested relief from debt in Singapore. The SEC then encouraged law enforcement to take action against Zipmex in September 2022 for refusing to disclose information as per Thailand's Digital Assets Act. This was followed by further SEC security checks in January as Zipmex geared up for a purchase by Thai investors V Ventures, which also didn't materialize.
Thailand's SEC awarded Zipmex a license in January 2020. The company operates in Thailand, Indonesia, Singapore, and Australia.
Published At
2/23/2024 10:30:00 PM
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