Thailand’s SEC moves to withdraw license from Zipmex

Thailand’s big financial watchdog, the SEC, is showing Zipmex the door, pulling the plug on its license to run its digital cash shop. This is another lump in a string of bad breaks for Zipmex in Thailand, shaking up the scene on Feb. 23. Basically, Zipmex has been skating on thin ice, and now, it’s cracking.

On Feb. 21, the folks at the SEC decided to keep Zipmex on a timeout, extending a business freeze slapped on them since Feb. 1. They’ve thrown a lifeline to clients, though, saying, “Grab your assets back from Zipmex by March 11.” Miss that boat, and your stuff gets locked in a digital vault, with Zipmex having to report back to the SEC. But hey, even without its license, Zipmex is still kicking as a company, with all the baggage that comes with it, including the chance of getting dragged to court.

Zipmex has made history with getting in trouble. But the real drama began in 2022, when the exchange tripped over its ties to crypto lenders Babel and Celsius, which were going belly up. Zipmex hit the pause button on withdrawals, causing a stir among users. Although it managed to get the Trade Wallets back online quickly, its Z Wallets stayed under lock and key, spilling into the next year.

It’s not like no one tried to throw Zipmex a lifeline. Coinbase flirted with the idea of buying Zipmex in 2022 but ended up just making a “strategic investment” instead. Meanwhile, Zipmex was trying to dodge bullets, filing for debt relief in Singapore and facing the music from the SEC for not spilling the beans under the country’s Digital Assets Act. Adding to the problems, a potential rescue deal with Thai investors V Ventures fell through, leaving Zipmex hanging.

Then the SEC said they found Zipmex’s crib sheet lacking, calling out their cash cushion and the crew running the show as not up to snuff. Zipmex got a 15-day ultimatum on Feb. 1 to shape up, but the clock ticked out. The SEC threw corruption charges at Zipmex’s CEO, Akalarp Yimwilai, on Feb. 8.

Nevertheless, Zipmex wasn’t always in hot water. Back in January 2020, it got the thumbs up from the SEC, spreading its wings across Thailand, Indonesia, Singapore, and Australia. But as the saying goes, “What goes up must come down.” And Zipmex is, for sure, crashing down right now.