After undergoing extensive regulatory scrutiny, Thailand's Securities and Exchange Commission (SEC) has taken the decision to revoke two operating licenses held by the cryptocurrency exchange Zipmex.

The SEC's announcement on June 11 disclosed that Zipmex has lost its authorization to function as a digital asset exchange and brokerage platform for cryptocurrencies in Thailand since May 28. The regulatory body had directed Zipmex to cease its operations serving Thai customers back in February until it could rectify its financial standing and rectify operational deficiencies. Despite this directive, the Finance Minister found that Zipmex was still not compliant with the regulations set forth.

In response to the SEC's actions, the exchange has been mandated to return assets to its clients or manage these assets based on the clients' preferences. Should any clients fail to provide instructions or claim their assets, Zipmex must securely store the unclaimed assets and provide a detailed account of the process to the SEC promptly.

Zipmex came under heightened regulatory scrutiny following the downturn in the crypto market in 2022. The SEC initiated an inquiry into the exchange's activities after an acquisition by V Ventures raised concerns about Zipmex operating in Thailand without the necessary regulatory approvals. In an effort to comply with the regulatory framework, Zipmex halted trading operations in November 2023.

Having secured its initial license from the Thai SEC in 2020, the exchange, headquartered in Singapore, faced financial challenges two years later and filed for debt relief, indicating a debt owed to customers amounting to $97 million. By November 2023, Zipmex expressed its readiness to offer creditors 3.35 cents per dollar for their initial claims as part of a broader restructuring initiative.