Thai authorities cancel Zipmexs license
Struggling crypto exchange Zipmex has had its operating license revoked by Thai authorities due to repeated failures to comply with regulatory directives. The Securities and Exchange Commission (SEC) in Thailand found that Zipmex had not addressed concerns regarding financial instability and poor management despite multiple warnings.
In a statement released on Jun. 11, the SEC announced that Zipmex’s license was being revoked, and recommended that the Ministry of Finance take action. The Ministry’s decision mandates that Zipmex must immediately cease all cryptocurrency operations and return customer assets within 15 days. If assets are not claimed within this timeframe, Zipmex must securely store them for 30 days and report all steps to the SEC.
Zipmex, founded in 2018 and headquartered in Singapore, had already suspended trading activities in Thailand in November 2023. This was in response to penalties imposed by the SEC for alleged misconduct related to a crypto custodian service and for directing customers to the Singapore-based exchange Zipmex Pte, resulting in a conflict of interest. Apart from Thailand, Zipmex also operates in Australia and Indonesia.
In addition to its regulatory challenges, Zipmex has been struggling financially, reporting losses exceeding $50 million due to its involvement with bankruptcies of Babel Finance and Celsius Network in 2022. Despite these setbacks, Zipmex has not made any public statements regarding the recent license revocation.
As Zipmex navigates these difficulties, the exchange is seeking an extension on the moratorium window to help with its rehabilitation plan.
