After repeated failures to comply with regulatory orders, the beleaguered crypto exchange, Zipmex, has had its business license revoked by Thai authorities. The Securities and Exchange Commission (SEC) announced the decision on Jun. 11, citing concerns over financial instability and inadequate management at Zipmex.
Despite multiple directives to address these issues, Zipmex did not meet the requirements within the specified timeframe. As a result, the SEC recommended to the Ministry of Finance that the company’s license be revoked. The Ministry’s ruling mandates that Zipmex cease all crypto operations immediately and return customers’ assets within 15 days. If assets are unclaimed, Zipmex must store them for 30 days and report each step to the SEC.
Since its establishment in 2018, Zipmex, based in Singapore, halted trading activities in Thailand in November 2023. This decision came after penalties were imposed by the SEC for alleged misuse of a crypto custodian service and for directing customers to the Singapore-based exchange, Zipmex Pte, creating a conflict of interest. Zipmex also operates in Australia and Indonesia.
In addition to regulatory challenges in Thailand, Zipmex’s efforts to recover have been hindered by significant losses of over $50 million. These losses were incurred due to the bankruptcies of Babel Finance and Celsius Network in 2022.
As of now, Zipmex has not issued any public statements regarding the revocation of its business license. The exchange is also seeking an extension on the moratorium window to address its financial difficulties.