Beleaguered cryptocurrency exchange Zipmex has recently faced a setback after losing its business license in Thailand due to repeated non-compliance with regulatory orders. The Securities and Exchange Commission (SEC) of Thailand cited concerns over Zipmex’s financial instability and inadequate management in a press release on Jun. 11. Despite multiple directives to address these issues, Zipmex failed to meet the requirements within the specified timeframe, leading to the recommendation of license revocation by the Ministry of Finance.
As a result of the Ministry’s decision, Zipmex is required to immediately cease its cryptocurrency operations and return customers’ assets within 15 days. In the event that customers do not claim their assets within this timeframe, Zipmex must securely store the assets for 30 days and update the SEC on each step of the process. Despite these developments, Zipmex has remained quiet on the matter as of now. Established in 2018 and based in Singapore, Zipmex had ceased its trading activities in Thailand in November 2023 following penalties from the SEC for allegedly misusing a cryptocurrency custodian service and steering customers towards the Singaporean-based Zipmex Pte exchange, creating a conflict of interest. Additionally, Zipmex has a presence in Australia and Indonesia.
In addition to its regulatory troubles in Thailand, Zipmex has faced financial setbacks with losses surpassing $50 million due to its association with the bankruptcies of Babel Finance and Celsius Network in 2022. The exchange’s rehabilitation plan has hit a roadblock as a result of these significant losses. Despite its challenges, Zipmex continues to operate in other countries, seeking to overcome its past difficulties and regain stability in the cryptocurrency market. The loss of its business license in Thailand serves as a stark reminder of the importance of regulatory compliance and financial stability in the ever-evolving crypto industry.
Moving forward, Zipmex will need to reassess its business strategies and prioritize regulatory adherence to rebuild trust with customers and regain credibility in the market. The exchange may also need to consider implementing tighter risk management practices to protect against potential financial losses and regulatory sanctions. By learning from past mistakes and taking proactive measures to address internal deficiencies, Zipmex can chart a path towards sustainable growth and success in the competitive cryptocurrency landscape. Ultimately, the loss of its business license in Thailand may serve as a turning point for Zipmex, prompting a renewed focus on compliance, transparency, and responsible business practices as it navigates the challenges of the crypto market.
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