Key Points
- Thai Minister of Finance revokes Zipmex’s digital asset exchange and broker licenses effective May 28, 2024.
- The revocation follows recommendations from the Thai SEC Board due to concerns over financial stability and management.
- Zipmex failed to rectify operations and return client assets within required timeframes.
- Despite the license revocation, Zipmex remains a limited company with ongoing responsibilities.
In a significant regulatory move, the Thai Minister of Finance has revoked the digital asset exchange and broker licenses of Zipmex, effective May 28, 2024. This decision follows a recommendation from the Thai Securities and Exchange Commission (SEC) Board, citing concerns over the platform’s financial stability, inadequate management structure, and insufficient personnel.
Financial Stability and Management Concerns
The SEC’s decision to recommend the revocation was driven by Zipmex’s inability to address critical operational deficiencies. Licensed under the Emergency Decree on Digital Asset Businesses, Zipmex was ordered by the SEC Board on January 11 to rectify its operations. Subsequent deadlines in February were also missed, highlighting ongoing non-compliance issues.
The SEC’s concerns were not just about compliance but also the platform’s potential risk to the public. The exchange’s failure to return assets to clients within the stipulated timeframes further exacerbated the situation, prompting the SEC Board to propose the revocation.
Thai SEC revokes Zipmex’s licenses after failure to comply with orders: Thailand’s Finance Minister determined the cryptocurrency exchange was “still in contravention” of orders imposed by the SEC in February. https://t.co/PKmLh7qKlO #CryptoNews #crypto #Bitcoin pic.twitter.com/XL9u09KxKU
— @zimisss (@zimisss) June 11, 2024
Responsibilities and Liabilities
Despite the revocation of its licenses, Zipmex continues to exist as a limited company. This status means it retains certain responsibilities and liabilities, particularly regarding client assets. Zipmex is now obligated to return these assets or secure unclaimed assets within a trusted system and report the process to the SEC.
This move aims to ensure that clients’ interests are protected despite the exchange’s operational challenges. The SEC will monitor the process closely to ensure compliance with its directives.
Thai Finance Minister Revokes #Crypto Exchange #Zipmex‘s Licenses #NewsBytes https://t.co/g92wcVGonp
— Bitcoin.com News (@BTCTN) June 13, 2024
Impact on the Crypto Market
The revocation of Zipmex’s licenses marks a significant development in Thailand’s regulatory landscape for digital assets. It underscores the stringent regulatory environment and the authorities’ commitment to maintaining market integrity and protecting investors.
Market participants and other crypto exchanges operating in Thailand will likely view this development as a cautionary tale, emphasizing the need for compliance with regulatory standards. This action by the Thai SEC and the Minister of Finance could also set a precedent for how other non-compliant crypto exchanges are dealt with in the future.
