Thai cryptocurrency exchange Zipmex has lost its business license after failing to comply with regulatory orders from the Securities and Exchange Commission (SEC). On June 11, the SEC cited financial instability and inadequate management as reasons for the license revocation.
The Ministry of Finance has mandated Zipmex to cease operations and return customer assets within 15 days. Founded in 2018, Zipmex faced penalties for misusing a crypto custodian service and creating conflicts of interest by funneling customers to its Singapore-based exchange. The company also operates in Australia and Indonesia.
Zipmex’s troubles worsened after significant losses exceeding $50 million from the bankruptcies of Babel Finance and Celsius Network in 2022. This event highlights the importance of strong regulatory compliance in the volatile crypto market.
