• The SEC of Thailand is investigating cryptocurrency exchange Zipmex for potential violations of local rules for digital asset service providers.
• Zipmex is in the process of being acquired by V Ventures for around $100 million.
• Zipmex has until Jan. 12 to clarify whether it has been functioning as a „digital asset fund manager without permission“ in Thailand.
The Securities and Exchange Commission (SEC) of Thailand is currently investigating cryptocurrency exchange Zipmex for potential violations of local rules for digital asset service providers. According to the SEC, Zipmex has until Jan. 12 to clarify whether it has been functioning as a „digital asset fund manager without permission“ in Thailand. If true, the firm would have needed to obtain a permit before conducting business in the country.
The investigation comes as the cryptocurrency exchange is in the process of being acquired by V Ventures, a subsidiary of Thoresen Thai Agencies PCL, for around $100 million. Zipmex allegedly plans to unfreeze customer accounts using funds from the acquisition by April 2023.
The SEC’s investigation is the latest in a series of regulatory actions taken against digital asset companies in Thailand. In August 2020, the country’s central bank ordered digital asset service providers to cease operations until they receive approval from the SEC. In October 2020, two exchanges, Bitkub and Bitazza, were fined by the SEC for failing to register with them as required by law.
The SEC’s decision to investigate Zipmex could have serious implications for the cryptocurrency exchange. If it is found to have violated the rules, it could face severe penalties, including fines, suspension of operations, or even revocation of its license.
The cryptocurrency industry in Thailand is still in its infancy, and the SEC’s actions demonstrate the country’s commitment to ensuring that digital asset service providers abide by the regulations that have been put in place. This could help to create a more secure and compliant environment for cryptocurrency exchanges and other digital asset service providers in the country.
Regardless of the outcome of the SEC’s investigation into Zipmex, it is clear that Thailand is taking the necessary steps to ensure that the cryptocurrency industry operates in a safe and responsible manner. This could help to further legitimize cryptocurrencies in the country and encourage adoption by more investors.