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Thai SEC Revokes Operating Licenses of Cryptocurrency Exchange Zipmex –
Thailand’s Securities and Exchange Commission (SEC) has taken action against cryptocurrency exchange Zipmex, revoking its operating licenses after months of regulatory scrutiny.
In a announcementThe SEC has revealed that Zipmex will no longer be able to operate as a digital asset exchange and cryptocurrency broker in Thailand, effective May 28, 2024.
The move comes after the SEC previously ordered Zipmex to suspend its services to Thai users in February until it rectified its financial position and operational deficiencies. However, the exchange failed to comply with these directives, leading to the revocation of its licenses.
According to the SEC, Zipmex is now obligated to return the goods to its customers or satisfy any requests made by the customers themselves. In the event that customers fail to notify their claims or reclaim their assets, Zipmex must deposit the unclaimed assets in a reliable and secure system.
“If any customer fails to notify its claims or reclaim its assets, Zipmex must deposit the unclaimed assets in a reliable and secure system and must promptly report its proceedings, step by step, to the SEC,” the SEC said .
Zipmex under regulatory scrutiny from 2022
Zipmex has been under scrutiny by the SEC since the cryptocurrency market crisis in 2022. The exchange has faced an investigation related to its acquisition by V Ventures and allegations of operating in Thailand without regulatory approval.
In response to regulatory pressure, Zipmex suspended trading in November 2023, citing intent to comply with regulations.
Originally licensed by Thailand’s SEC in 2020, Zipmex ran into financial difficulties and filed for debt relief in 2022, owing customers $97 million.
As part of its restructuring efforts, the exchange has proposed to offer creditors $0.0335 on the dollar for initial calls starting in November 2023. However, the revocation of its operating licenses adds further uncertainty to Zipmex’s future and its ability to face future challenges.
Earlier this year, the Thai SEC charged Akarlap Yimwilai, former CEO of Zipmex Thailand, with corruption and deception.
At the time, the SEC investigation revealed that customer assets held in Zipmex Thailand’s Z Wallet had been transferred to overseas digital wallets without prior disclosure of changes to the platform’s terms and conditions.
Thailand is emerging as a major crypto hub
Thailand has consolidated its position as a key destination for investors in offshore digital assets, despite some past controversies. Just recently, the country’s Ministry of Finance announced exemption from value-added tax (VAT) on digital asset trading.
The decision eliminates the obligation to pay 7% VAT on income from trading cryptocurrencies and digital tokens, providing a favorable environment for investors and traders.
The VAT exemption, which came into effect in January this year, has no specific end date and offers a long-term incentive for participants in the digital asset space.
TO EXPLORE: What are Bitcoin ETFs? A beginner’s guide
In another development, the SEC granted approval to One Asset Management (ONEAM) to launch the country’s first spot Bitcoin exchange-traded fund (ETF).
The newly approved fund, known as ONE Bitcoin ETF Fund of Funds Unhedged and not for retail investors (ONE-BTCETFOF-UI), will be distributed between May 31, 2024 and June 6, 2024.
Disclaimer: Cryptocurrencies are a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all your capital.