Thai regulators revoke Zipmex’s crypto license

Beleaguered crypto exchange Zipmex has lost its operating license after Thai authorities found the exchange repeatedly failed to comply with orders.

Thai cryptocurrency exchange Zipmex has lost its operating license after the Securities and Exchange Commission (SEC) found that the exchange failed to comply with regulatory orders.

The SEC announced in a press release on June 11 that the revocation of Zipmex’s license was due to concerns about the company’s financial instability and inadequate management. Despite various directives to correct these issues, Zipmex failed to comply within the given timeframe, leading the SEC to recommend that the Thai Ministry of Finance revoke the company’s license.

The ministry’s decision requires Zipmex to immediately cease its crypto operations and transfer customers’ assets back to them within 15 days. If customers do not claim their assets within the period, Zipmex must retain the assets within 30 days and report each step of the process to the SEC. As of press time, Zipmex has not made any public statement on the matter.

Founded in 2018, Singapore-based Zipmex ceased trading business in Thailand in November 2023; faced penalties from the SEC for alleged misuse of a crypto custody service and creating a conflict of interest by directing customers to Singapore-based exchange Zipmex Pte. Zipmex also operates in Australia and Indonesia.

Beyond regulatory challenges in Thailand, Zipmex’s rehabilitation plan has stalled following significant losses of more than $50 million in 2022 due to its exposure to the bankruptcies of Babel Finance and Celsius Network.