July 24, 2024
Thailand's SEC Revokes Zipmex Licenses
Latest Cryptocurrency News

Thailand’s SEC Revokes Zipmex Licenses

Following months of regulatory review, Thailand’s Securities and Exchange Commission (SEC) has revoked two operating licenses for cryptocurrency exchange Zipmex. The decision, announced on June 11, signifies that Zipmex is no longer authorized to function as a digital asset exchange and broker for cryptocurrencies in Thailand since May 28. This action comes after the SEC directed Zipmex to halt its services to Thai users in February, citing the need to address financial and operational deficiencies. Despite this directive, the Finance Minister found Zipmex to still be non-compliant, prompting the license revocation.

Asset Return Mandate and Regulatory Oversight

The SEC’s directive mandates that Zipmex return assets to its clients or adhere to their instructions. For unclaimed assets, Zipmex is required to deposit them in a trusted system and provide detailed progress reports to the SEC. The regulatory actions underscore Thailand’s commitment to ensuring compliance within its digital asset ecosystem and protecting investor interests.

Zipmex’s Regulatory Challenges and Market Impact

Zipmex, initially licensed by the Thai SEC in 2020, faced intensified scrutiny following the 2022 crypto market downturn. Regulatory concerns were amplified amid investigations into Zipmex’s acquisition by V Ventures and allegations of unauthorized operations in Thailand. The exchange’s decision to suspend trading in November 2023 was positioned as a step towards regulatory alignment. However, subsequent developments, including the debt relief filing in 2022 and the reported restructuring efforts in 2023, reflect ongoing challenges in navigating regulatory compliance and addressing financial obligations.

As Zipmex navigates these regulatory hurdles, the broader implications extend beyond its operations, impacting investor confidence and regulatory oversight in Thailand’s digital asset landscape. The SEC’s decisive actions serve as a reminder of the importance of regulatory compliance and transparency within the cryptocurrency sector, particularly amidst evolving market dynamics and regulatory frameworks.

Image by OpenClipart-Vectors from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

Related posts

Ordswap Struggles to Regain Control: Users Offered Tool to Recover Private Keys

Kevin Wilson

Yuga Labs’ Social Lead Resigns Amid Racist Tweet Controversy

Robert Paul

Thai SEC Warns Against Misleading Crypto Advertisements

Robert Paul

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.