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Thai SEC probes crypto exchange Zipmex ahead of its acquisition



Source: Unsplash

  • The Thai SEC is reportedly probing whether Zipmex breached local rules.
  • Zipmex is being acquired by V Ventures for $100 million.

Crypto exchange Zipmex has become the subject of a probe by the Securities and Exchange Commission (SEC) of Thailand. The Thai securities regulator is probing the exchange to determine whether it breached local rules when it offered certain digital-asset products.

Zipmex’s digital-asset products under scrutiny

According to a 10 January report by Bloomberg, the Thai SEC has noted that some Zipmex’s activities may be in violation of the local digital asset business rules. The same was conveyed in a letter to Akalarp Yimwilai, the CEO of the crypto exchange. 

The SEC believed that Zipmex may have been operating as a “digital-asset fund manager without permission.” The securities regulator has given the crypto exchange till 12 January to provide clarification on this matter.  

Zipmex’s ZipUP and ZipUP+ programs are the products under question. These products have been offered to the exchange’s clients since October 2020. Both products were managed and operated by Babel Finance. Clients of the exchange could earn a return on their tokens with these programs. 

Probe amid the acquisition of Zipmex by V Ventures

The probe by the Thai SEC comes at a rather crucial time for Zipmex. The Bangkok based crypto exchange is currently being acquired by V Ventures, which is a subsidiary of Thoresen Thai Agencies Pcl. 

The acquisition is reportedly worth $100 million and will give V Ventures a 90% stake in the crypto exchange. It is essentially a bailout for the exchange’s customers who have been struggling to get their funds ever since the exchange suspended withdrawals in July 2022.

The Thai SEC had issued a warning to investors looking to make a deal with the troubled crypto exchange last month.

The regulator stated:

“The SEC received complaints from Zipmex customers that its privacy agreement is unclear and unfair, and the SEC shares this view. We also found these personal agreements lack information that is material to the customer’s decision.” 

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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