In a statement released on Monday, the Thai Securities and Exchange Commission (SEC) explained its recommendation to revoke crypto exchange Zipmex’s digital asset business license.
On May 28, the Ministry of Finance in Thailand annulled Zipmex’s license to operate in the digital asset sector, on recommendation from the SEC.
In its clarification, the SEC highlighted concerns regarding the company’s financial stability, indicating potential risks to customers. Moreover, the regulator criticized the firm’s management and staffing as insufficient for responsibly operating and adhering to regulations.
The statement noted,
“Due to its failure to maintain net capital in compliance with the governing law and its inappropriate and insufficient management structure and personnel, Zipmex may be liable to offenses related to client assets, which may potentially harm public interests.”
Thai SEC
Zipmex’s Troubled Past
Earlier in the year, Zipmex encountered significant issues with Thai regulators. In January, the SEC raised concerns about the company’s financial health and management structure, mandating changes. However, Zipmex failed to comply, resulting in a temporary suspension of its trading and brokerage services in February and a limited timeframe to rectify the situation.
The situation worsened when the SEC initiated an investigation. The regulator accused former CEO Akarlap Yimwilai of fraud and deception.
In an official statement released on Thursday, the SEC disclosed that its investigation found customer assets in Zipmex Thailand’s Z Wallet had been moved to international digital wallets without prior disclosure of changes to the platform’s terms and conditions.
Despite the suspension and the deadline, Zipmex continued to fall short. By February 21, the SEC concluded that Zipmex had not resolved the compliance issues or made the necessary operational changes.
In a recent development, the SEC has mandated new rules for Zipmex concerning customer assets. They require Zipmex to return these assets to customers within a 15-day window. If any assets go unclaimed, Zipmex must secure them in a safeguarded system and keep the SEC updated with thorough reports on each step taken.
