The Securities and Exchange Commission (SEC) has
directed Zipmex Company Limited to suspend its digital asset trading center and
broker services temporarily. The SEC’s decision stems from persistent financial
and operational deficiencies that Zipmex has been unable to rectify despite
prior orders.
According to the SEC, the 15-day window for
corrective measures, initiated on January 12, 2024, has lapsed, leading to the
decisive action taken during the SEC Committee’s meeting on February 1, 2024.
The committee expressed concerns over Zipmex‘s
failure to address issues related to net liquid capital maintenance, business
structure, and potential offenses involving customer property. Under the
suspension directive effective February 2, 2024, Zipmex must adhere to specific
corrective actions.
Anek Yuyuen, the Deputy Secretary General and SEC
Spokesperson, mentioned: “According to the process specified by law, if
the digital asset business operator is unable to comply with the SEC’s orders
under Section 35, paragraph two, within the specified period, the SEC may
propose that the Minister of Finance consider revoking the order. Permissible
according to Section 35, paragraph three of the Digital Assets Decree.”
Zipmex is required to correct its financial position
to maintain funds following regulatory guidelines. The company must modify its
management structure and personnel, ensuring efficiency and compliance with
legal requirements. Additionally, Zipmex must establish a system
preventing the utilization of customers’ deposited assets.
Zipmex Faces Regulatory Challenges
Zipmex must submit the results of these corrections
within 15 days from the suspension date, after which the SEC will assess and
potentially grant permission for the resumption of normal business operations.
During the suspension, Zipmex must prioritize
customer welfare by allowing asset withdrawals at any time. Additionally, the
company is tasked with contacting customers for fund and digital asset returns
and facilitating money transfers according to customer preferences.
In 2022, Zipmex planned a meeting with potential investors and the SEC before finalizing a funding deal. Despite moratorium
protection until December 2, Zipmex engaged with regulators and other
government agencies to present its recovery plans and seek approval.
Zipmex’s move involved reaching out to the SEC and
other regulatory bodies in the countries where it operates to introduce
potential investors and outline its recovery plan to government agencies.
Operating across the Asia Pacific region, Zipmex held a significant presence in
Thailand, Singapore, Australia, and Indonesia, with a regulatory license in
Thailand.
The exchange ‘s troubles stem from its exposure to
Babel Finance, an Asian crypto-lending platform undergoing liquidation.
The Securities and Exchange Commission (SEC) has
directed Zipmex Company Limited to suspend its digital asset trading center and
broker services temporarily. The SEC’s decision stems from persistent financial
and operational deficiencies that Zipmex has been unable to rectify despite
prior orders.
According to the SEC, the 15-day window for
corrective measures, initiated on January 12, 2024, has lapsed, leading to the
decisive action taken during the SEC Committee’s meeting on February 1, 2024.
The committee expressed concerns over Zipmex‘s
failure to address issues related to net liquid capital maintenance, business
structure, and potential offenses involving customer property. Under the
suspension directive effective February 2, 2024, Zipmex must adhere to specific
corrective actions.
Anek Yuyuen, the Deputy Secretary General and SEC
Spokesperson, mentioned: “According to the process specified by law, if
the digital asset business operator is unable to comply with the SEC’s orders
under Section 35, paragraph two, within the specified period, the SEC may
propose that the Minister of Finance consider revoking the order. Permissible
according to Section 35, paragraph three of the Digital Assets Decree.”
Zipmex is required to correct its financial position
to maintain funds following regulatory guidelines. The company must modify its
management structure and personnel, ensuring efficiency and compliance with
legal requirements. Additionally, Zipmex must establish a system
preventing the utilization of customers’ deposited assets.
Zipmex Faces Regulatory Challenges
Zipmex must submit the results of these corrections
within 15 days from the suspension date, after which the SEC will assess and
potentially grant permission for the resumption of normal business operations.
During the suspension, Zipmex must prioritize
customer welfare by allowing asset withdrawals at any time. Additionally, the
company is tasked with contacting customers for fund and digital asset returns
and facilitating money transfers according to customer preferences.
In 2022, Zipmex planned a meeting with potential investors and the SEC before finalizing a funding deal. Despite moratorium
protection until December 2, Zipmex engaged with regulators and other
government agencies to present its recovery plans and seek approval.
Zipmex’s move involved reaching out to the SEC and
other regulatory bodies in the countries where it operates to introduce
potential investors and outline its recovery plan to government agencies.
Operating across the Asia Pacific region, Zipmex held a significant presence in
Thailand, Singapore, Australia, and Indonesia, with a regulatory license in
Thailand.
The exchange ‘s troubles stem from its exposure to
Babel Finance, an Asian crypto-lending platform undergoing liquidation.
