The troubled crypto exchange Zipmex has had its business license revoked by Thai authorities due to repeated failures to comply with regulatory directives.
Following the discovery of repeated non-compliance with regulatory directives, the Thai Securities and Exchange Commission (SEC) has revoked the business license of the cryptocurrency exchange Zipmex.
In a press release dated June 11, the SEC announced the revocation of Zipmex’s license due to concerns regarding the company’s financial instability and inadequate management. Despite receiving multiple directives to address these issues, Zipmex failed to comply within the specified timeframe, leading the SEC to recommend the revocation of the company’s license to Thailand’s Ministry of Finance.
The Ministry’s ruling mandates Zipmex to immediately cease crypto operations and return customers’ assets within 15 days. If assets remain unclaimed, Zipmex must store them within 30 days and provide detailed reports to the SEC at each stage. As of the current time, Zipmex has not issued any public statements regarding the decision.
Established in 2018 and headquartered in Singapore, Zipmex suspended its trading activities in Thailand in November 2023 following penalties imposed by the SEC. These penalties were related to the alleged misuse of a crypto custodian service and directing customers to the Singapore-based exchange Zipmex Pte, resulting in a conflict of interest. Zipmex also operates in Australia and Indonesia.
Apart from its regulatory challenges in Thailand, Zipmex’s efforts for rehabilitation have stalled due to significant losses exceeding $50 million incurred from the bankruptcies of Babel Finance and Celsius Network in 2022.