Thai SEC suggests revoking Zipmex exchange license

Thai SEC is thinking of canceling Zipmex’s digital asset business license due to issues like inadequate staff and management structure.

On February 23, the Finance Ministry received a recommendation from the Securities and Exchange Commission Board of Thailand (SEC) to cancel the digital asset business license of cryptocurrency exchange Zipmex.

This is the most recent in a string of setbacks for the exchange in Thailand. Thai SEC decided at a meeting on February 21 that Zipmex’s business suspension which was put in place on February 1, and customers could ask for the restoration of their assets on the exchange until March 11.

Following that date, Zipmex will have to notify Thai SEC and store unclaimed money in a “trusted and secured system.”

“Even after the effective revocation of its license, Zipmex retains its status as a limited company with corresponding rights, responsibilities and liabilities, including the possibility of being subject to legal action.”

The SEC had determined that Zipmex’s staff and management structure were “inappropriate and insufficient” and the agency stated this action was taken after Zipmex missed a deadline to enhance its net capital and improve these areas.

On February 1, Zipmex was granted a 15-day period to adhere to SEC regulations. At that point, it was instructed to halt business operations.

On February 8, Thai SEC announced that it was accusing former Zipmex CEO Akalarp Yimwilai of wrongdoing. The problems with the exchange started in 2022. On July 20 of that year, it halted withdrawals for several weeks due to concerns about its exposure to insolvent cryptocurrency lenders Celsius and Babel.

After three days, Zipmex allowed users to use their Trade Wallets again but its Z Wallets remained inaccessible until the next year. In 2022, Coinbase attempted in vain to purchase Zipmex.

Ultimately, Coinbase made an undisclosed “strategic investment” but an August report did not list Coinbase as one of the exchange’s top three investors. On July 27 2022, Zipmex applied for debt relief in Singapore.

The country’s Digital Assets Act requires Zipmex to give information and in September 2022, the SEC suggested taking police action against the company for this violation.

Thai SEC increased its investigation of it in January of the following year as it got ready for a purchase by Thai investor V Ventures. That agreement also fell through.

In January 2020, Zipmex received a license from the SEC. The exchange is active in Australia, Singapore, Indonesia and Thailand.