The cryptocurrency exchange Zipmex lost its operating license after Thai authorities discovered that it had consistently disregarded directives.Â
The Securities and Exchange Commission (SEC) discovered that Thai cryptocurrency exchange Zipmex had consistently disregarded court orders, leading to the exchange losing its business license.
In a news release dated June 11, the SEC stated that Zipmex’s license was revoked due to concerns regarding the company’s unsound financial practices and insufficient management.
Zipmex disregarded many orders to address these problems, so the SEC recommended that Thailand’s Ministry of Finance cancel the business license. In accordance with the Ministry’s ruling, Zipmex must stop all cryptocurrency operations right once and return consumers’ assets to them within 15 days.Â
If clients fail to retrieve their assets within the allotted time, Zipmex is required to store the assets for 30 days and notify the SEC of every stage of the procedure.
Zipmex has not released any official statements regarding this issue. The 2018-founded company Zipmex, with its headquarters in Singapore, closed for business in November 2023 after being fined by the SEC for allegedly misusing a cryptocurrency custodial service and for directing clients to the Singapore-based exchange Zipmex Pte, so posing a conflict of interest.
Additionally, Zipmex is active in Indonesia and Australia. In addition to facing regulatory challenges in Thailand, Zipmex’s rehabilitation effort has come to a standstill after suffering substantial losses above $50 million as a result of its exposure to the 2022 bankruptcies of Celsius Network and Babel Finance.
