After months of regulatory scrutiny, Thailand’s Securities and Exchange Commission (SEC) has revoked two operating licenses for cryptocurrency exchange Zipmex.

In a June 11 announcement, the SEC said Zipmex was no longer authorized to operate as a digital asset exchange and broker for cryptocurrencies in Thailand as of May 28. The regulator ordered Zipmex to suspend its services to Thai users in February until it could “correct its financial position and operational deficiencies.” However, the Finance Minister determined the exchange was “still in contravention” of the orders.

“Zipmex is required to return assets to its clients or proceed according to their clients’ requests,” said the SEC. “If any clients do not notify their requests or claim their assets, Zipmex must deposit the unclaimed assets in a trusted and secure system and must report its proceedings, step by step, to the SEC without delay.”

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Following the 2022 crypto market downturn, Zipmex was under regulatory scrutiny from the SEC. The exchange reportedly faced a probe over an acquisition by V Ventures and whether it had been operating in Thailand without regulatory approval. Zipmex suspended trading in November 2023, saying that the move was an attempt to comply with regulations.

First licensed by the Thai SEC in 2020, the Singapore-based exchange filed for debt relief two years later, reportedly owing customers $97 million. As of November 2023, Zipmex reportedly said it was willing to offer creditors 3.35 cents per dollar for initial claims as part of its restructuring efforts.

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