Thai SEC Revokes Licenses of Crypto Exchange Zipmex Over Regulatory Breaches
Summary:
Thailand's SEC has rescinded two operating licenses from cryptocurrency exchange Zipmex due to operational and financial irregularities. Zipmex, initially licensed in 2020, was ordered to halt its services to Thai users until it corrected these issues but continued to breach orders. The firm, which filed for debt relief in 2022, owing customers $97 million, must now return assets to its clients or deposit unclaimed assets into a secure system. Zipmex attracted regulatory scrutiny following a crypto market downturn in 2022 amid investigations into an acquisition and accusations of operating without proper authorization in Thailand.
The Securities and Exchange Commission (SEC) of Thailand has withdrawn two operating certificates from cryptocurrency exchange Zipmex after meticulous regulatory oversight for several months. In a disclosure made public on 11th of June, the SEC clarified that Zipmex no longer holds the authorization to function as a broker or an exchange for digital assets, specifically cryptocurrencies, within Thailand, effective from 28th of May. Earlier in February, the SEC demanded that Zipmex halt its services for Thai clients until the resolution of its operational shortcomings and financial irregularities, a mandate which the Finance Minister found Zipmex to be continually breaching.
The SEC directed Zipmex to either return the assets to its customers or proceed in a manner as requested by them. It further specified that in case of clients refraining from placing any request or claiming their assets, Zipmex is obligated to securely deposit these unclaimed assets in a reliable system, with a detailed report of the proceedings to be submitted to the SEC promptly.
In the aftermath of the downtown in the crypto market in 2022, Zipmex received investigative attention from the SEC. The agency reportedly looked into an alleged acquisition by V Ventures, and it was supposed that Zipmex might have been functioning within Thailand without appropriate regulatory authorization. Zipmex halted its trading operations in November 2023, citing regulatory compliance as the reason.
Initially obtaining its license from the Thai SEC in 2020, the Singapore-based exchange filed for debt alleviation two years after, reportedly having a debt of $97 million due to its customers. As per information from November 2023, Zipmex signaled its willingness to offer creditors 3.35 cents against every dollar for initial claims as an integral part of its restructuring plans.
Published At
6/11/2024 6:00:42 PM
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