Thailand Revokes Zipmex's Digital Asset License Amid Regulatory Concerns

June 11, 2024 BACK TO NEWS

Thailand's Ministry of Finance has taken decisive action by revoking Zipmex's digital asset business license on May 28, following repeated failures to comply with regulatory directives. The move came after the Securities and Exchange Commission (SEC) raised significant concerns about the exchange's financial health and management structure, ultimately deeming it unfit to operate responsibly within the market.

The SEC's decision was prompted by ongoing issues with Zipmex's finances and management structure, which were flagged earlier this year. Despite orders from the SEC to rectify these issues, Zipmex failed to comply, leading to the temporary suspension of its trading and brokerage services in February.

The situation escalated further when the SEC launched an investigation and charged the former CEO, Akarlap Yimwilai, with fraud and deception. The investigation revealed that Zipmex had transferred customer funds from its Thai wallets to overseas accounts without regulatory approval, raising serious trust concerns.

Despite the suspension and a deadline to address compliance issues, Zipmex continued to fall short of regulatory expectations. As of February 21st, the SEC determined that Zipmex had not adequately addressed the compliance issues or made necessary operational changes.

In response to these findings, the SEC has mandated specific actions for Zipmex to handle customer assets. The exchange is required to transfer assets back to customers within 15 days and implement stringent reporting measures to ensure transparency throughout the process.

The revocation of Zipmex's digital asset license underscores the Thai government's commitment to upholding regulatory standards and protecting investors within the digital asset market. It serves as a reminder to industry participants of the importance of compliance and accountability in maintaining a trustworthy and sustainable financial ecosystem.