Thai SEC Files Police Complaint Against Crypto Exchange Zipmex for Non-Compliance

Thailand’s Securities and Exchange Commission has filed an official police complaint on Zipmex, one of Asia Pacific’s prominent digital assets exchange platforms operating in Singapore, Thailand, Indonesia, and Australia for non-compliance. In a statement released by the SEC, the authorities have reported Zipmex’s executive Eklarp Yimwilai, Chief Executive Officer (Thailand) of Zipmex, to the Technology Crime Investigation Headquarters. 

The case has been registered with the Royal Thai Police (AMC) for non-compliance under the Digital Assets Act. Under the act, the company and its executives have been ordered to send information to electronic wallets, used to store customer assets and details about the transfer or withdrawal of digital assets. 

Zipmex and Eklarp have been held responsible for not delivering information to the authorities within the specified time. Furthermore, SEC said that upon receiving notification from the official, only part of the information and incomplete information was submitted.

The company also failed to include the circumstance of delay in not submitting the information requested by the official.

The authorities have stated that such actions by Zipmex Eklarp are considered to be non-compliance, which is an offense and has a penalty under Section 75 of the Digital Assets Act.

Zipmex Froze Withdrawals After Facing Financial Difficulties

Recently, Zipmex froze withdrawals while facing financial difficulties caused by troubled crypto lender Babel Finance, as Zipmex was facing losses of around $100 million of funds to Babel Finance. The company was granted three months of protection from creditors by Singapore’s High Court to work on a funding plan. 

Less than a month ago, some shareholders and potential investors in Zipmex urged CEO Marcus Lim – who owns 25% of the company – to step down over management decisions that led to a severe cash crunch, Bloomberg reported

Meanwhile, the management team has repeatedly stated that it is focused on executing the company’s recovery plan. While the company has allowed clients to withdraw some tokens, any complete easing would require a capital infusion into Zipmex. 

In Singapore, many firms have crumbled under the weight of the crypto winter and have filed for bankruptcy protection against legal action from creditors.

On the Flipside

  • Despite increased scrutiny of the crypto industry, Thailand remains fertile grounds for digital-asset plans.

Why You Should Care

Despite increased scrutiny of the crypto industry, Thailand remains fertile grounds for digital-asset plans.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Akriti is a Zurich-based reporter, focused on the political, regulatory, and legislative developments around crypto. She is a business journalist with over six years of experience working as a correspondent for organizations like Channel NewsAsia and Bloomberg TV India. In that time, Akriti has covered news in the finance, pharma, and state sectors.