Thai SEC Suggests Canceling The Problematic Exchange’s License: Zipmex

0
45
Zipmex

The crypto winter took a serious toll on the Asian digital asset market, and recovery is slow. On February 23, the Finance Ministry received a recommendation from the Securities and Exchange Commission Board of Thailand (SEC) to cancel the digital asset business license of Zipmex, the cryptocurrency exchange. This is the most recent in a string of setbacks for the exchange in Thailand. The SEC decided at a meeting on February 21 that their business suspension, which was put in place on February 1, would remain in place and that customers could ask for the restoration of their assets on the exchange until March 11. 

Following that date, the company will have to notify the SEC and store unclaimed money in a “trusted and secured system”. The organization stated that it “keeps its license in effect long after it has been revoked, giving it the same rights, obligations, and liabilities as a limited corporation, including the potential for legal action.”

Zipmex Had Recently Been Granted A 15-day Period To Adhere To SEC Regulations 

This action was taken in response to Zipmex’s failure to fulfill a deadline for raising net capital and making improvements to its management team and staff, which the SEC had determined to be “inappropriate and insufficient.” On February 1, Zipmex was granted a 15-day period to adhere to SEC regulations. At that point, it was instructed to halt business activities. The problems with the exchange started in 2022. It halted withdrawals on July 20 of that year for many weeks because of worries about its exposure to insolvent cryptocurrency lenders Celsius and Babel. After three days, Zipmex allowed users to use their Trade Wallets again, but its Z Wallets remained inaccessible until the next year. In 2022, Coinbase attempted in vain to purchase Zipmex. In the end, Coinbase made an undisclosed “strategic investment,” although in an August report, Coinbase was not included as one of the exchange’s top three investors.