Thailand’s Securities and Exchange Commission (SEC) has proposed revoking Singapore exchange Zipmex’s digital asset business license.
At its meeting last week, the SEC board passed a resolution proposing that Thailand’s finance minister revoke Zipmex’s license for failing to maintain net capital in compliance with Thai law. The SEC also added that the exchange “has inadequate and inadequate management structures and personnel.”
Until the finance minister revokes the license, Zipmex will remain a registered Thai company and must comply with all relevant regulations, the regulator says.
“However, even after the license is effectively revoked, Zipmex retains its status as a limited company with applicable rights, liabilities and liabilities, including the possibility of taking legal action,” the SEC said.
The agency also ordered Zipmex to refund customers for the period of its operation. If any of the customers fail to claim their assets before the deadline, the watchdog ordered the exchange to deposit those assets “in a reliable and secure system within 30 days of the deadline.”
On February 1, the SEC ordered Zipmex to cease operations in the Southeast Asian country, citing “financial conditions and operational deficiencies.” It took two weeks to resolve the situation, with the promise that Zipmex would be allowed to resume operations if conditions were met.
However, according to the latest SEC notice, the exchange failed to meet the requirements.
A week after the service was shut down, the SEC charged former Zipmex CEO Akalarp Yimwilai with corruption, fraud and fraud. Yimwilai claimed he made deceptive statements about moving customers’ funds from the company’s Z Wallet to an offshore digital wallet.
A decision on whether to file criminal charges against Yimwilai, who led Zipmex Thailand from 2018 to November 2023, now rests with the office of the provincial crime suppression department.
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