Thailand’s Crypto Exchange Zipmex Loses License

Thailand’s Ministry of Finance Revokes Zipmex Crypto License. Learn why the SEC recommended revoking Zipmex’s license and what it means for crypto users in Thailand.

The SEC explained its decision in a statement issued on Monday. Initially, it expressed apprehensions regarding the company’s financial stability, implying that it could potentially cause damage to its customers.

Secondly, the regulator determined that the company’s management structure and personnel needed to be revised to ensure that the business was operated responsibly and that regulations were followed.

Zipmex encountered difficulties with Thai regulators earlier this year. In January, the Securities and Exchange Commission (SEC) identified deficiencies in its financial and managerial framework.

The company was required to implement modifications; however, the exchange could not comply. Consequently, the SEC temporarily suspended its trading and brokerage services in February and provided them with a limited timeframe to resolve the issues.

By the time of publication, Zipmex had yet to respond to Protechbro’s request for comment.

Thai Securities and Exchange Commission (SEC) takes action against Zipmex for failing to comply

Following the SEC’s investigation, the situation became even more dire. The regulator accused and charged the former CEO, Akarlap Yimwilai, with fraud and deception.

The SEC discovered that the exchange had transferred customer funds from its Thai purses to overseas accounts without notifying regulators. This raised doubts about the veracity of the information Zipmex had previously provided.

Zipmex continued to fail despite the suspension and deadline. The SEC determined that Zipmex had not addressed the compliance issues and had yet to modify its operations by February 21.

Zipmex is now required to manage customer assets under the SEC’s regulations. Zipmex is obligated to return the assets to consumers within 15 days. If a customer fails to claim their assets, Zipmex must promptly report each process stage to the SEC and place them in a secure system.