Thai SEC’s Proposal: Revoking Zipmex Exchange License

On February 23, the Securities and Exchange Commission Board of Thailand (SEC) announced that it has recommended the revocation of crypto exchange Zipmex’s digital asset business license to the Finance Ministry. This latest setback adds to a series of troubles that the exchange has faced in Thailand. Earlier, at a meeting on February 21, the SEC also decided to continue Zipmex’s business suspension, which was imposed on February 1. Clients of Zipmex were given until March 11 to request the return of their assets on the exchange. After this date, any unclaimed assets will be held in a secure system and reported to the SEC. It is important to note that even if their license is revoked, Zipmex will still retain its status as a limited company and can face legal action. The SEC’s decision to recommend revoking the license comes after Zipmex failed to comply with the SEC’s orders to increase its net capital and improve its personnel and management structure. The agency found these improvements to be inappropriate and insufficient. Zipmex had 15 days to comply with the SEC, but it failed to do so, leading to the suspension of its business operations on February 1. On February 8, the SEC also charged former Zipmex CEO Akalarp Yimwilai with corruption. The troubles for Zipmex began in 2022 when it suspended withdrawals for several weeks due to concerns about its exposure to crypto lenders Babel and Celsius, who were facing bankruptcy. While access to Trade Wallets was restored after three days, Z Wallets remained blocked until the following year. In 2022, Coinbase attempted to acquire Zipmex but was unsuccessful. Instead, Coinbase made a strategic investment of an unspecified amount in Zipmex. Coinbase was not listed as one of the exchange’s top three investors in a report from August. Zipmex also filed for debt relief in Singapore in July 2022. In September of that year, the SEC recommended police action against Zipmex for failing to provide information under the country’s Digital Assets Act. As the exchange was preparing to be acquired by Thai investors V Ventures in January 2023, it faced further scrutiny from the SEC that ultimately led to the deal falling through. Zipmex was granted a license by the SEC in January 2020, and it currently operates in Thailand, Indonesia, Singapore, and Australia.