Thailand’s securities regulator is proposing to yank the licence of digital asset exchange Zipmex Co Ltd for failing to meet regulatory requirements.
Singapore-based Zipmex offers digital asset exchange services in Thailand, Australia and Indonesia.
The Securities and Exchange Commission, Thailand (SEC) had already suspended the company’s operations in Thailand on February 1 for failure to maintain net capital, and deficiencies in management and personnel structure. It also alleged the firm committed fraud by presenting false statement.
The SEC held a board meeting on February 21 and proposed to the Finance Ministry that Zipmex’s licence be revoked, the regulator says in a statement on February 27.
It ordered Zipmex to return assets to clients, and to deposit unclaimed assets in a trusted and secure system to protect their interest.
Zipmex’s troubles started two years ago when it lent US$48 million to troubled Hong Kong crypto lender Babel Finance, which is now under creditor protection following the 2022 crypto crash.
Spokespersons for Zipmex did not immediately respond to questions from Asia Asset Management.
