After a string of problems, the Thai SEC is cancelling Zipmex’s license. All commercial activities at Zipmex halted on February 1st, and the company did not allow the return of assets until March 11th.
The SEC, a major financial regulator in Thailand, has terminated Zipmex’s license to operate its online cash store. This is just the latest setback for Zipmex in Thailand, which has been causing quite a stir since February 23. Basically, Zipmex has been dangerously balancing, and it’s now giving out.
Zipmex has been subject to a business freeze since February 1, and on February 21, the SEC chose to keep them on a timeout. “Grab your valuables back from Zipmex before March 11. They’ve provided a lifeline to customers, nevertheless.” If you miss that boat, your belongings will be secured in a digital vault while Zipmex files a report with the SEC. Zipmex is still very much alive and well as a business, despite its lack of license—and with it, all the legal complications that may arise.
However, things got interesting in 2022 when the exchange came unstuck due to its connections to the failing crypto lenders Babel and Celsius. Zipmex shocked its customers when it temporarily halted withdrawals. The company’s Z Wallets remained under lock and key for the better part of a year, despite the rapid restoration of the Trade Wallets.
Nobody attempted to save Zipmex. In 2022, Coinbase considered purchasing Zipmex but ultimately decided to make a “strategic investment” instead. While the SEC was getting even with Zipmex for not disclosing enough information under Singapore’s Digital Assets Act, the company was attempting to avoid trouble by requesting debt relief in Singapore. The situation was already dire when a possible rescue plan with Thai investor V Ventures collapsed, leaving Zipmex high and dry.
Subsequently, the SEC said that they discovered deficiencies in Zipmex’s crib sheet, criticizing both their cash reserve and the management team for being inadequate. After receiving a 15-day ultimatum on February 1st, Zipmex failed to meet the deadline. On February 8, the SEC filed corruption accusations against Akalarp Yimwilai, CEO of Zipmex.
However, Zipmex did not always face criticism. Its wings expanded throughout Australia, Singapore, Indonesia, and Thailand after receiving approval from the SEC in January 2020. However, “What goes up must come down,” as the old adage puts it. Plus, Zipmex is definitely on a downturn at the moment.
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