Thailand probes embattled crypto exchange Zipmex on rule breach

THAILAND’S securities regulator is probing whether embattled crypto exchange Zipmex, which is in the midst of being taken over, breached local rules in its offer of certain digital-asset products.

The nation’s Securities and Exchange Commission wrote to Zipmex Thailand’s chief executive officer Akalarp Yimwilai on Dec 28 noting that some of the firm’s activities may be in violation of digital-asset business rules, according to a letter seen by Bloomberg News.

The company could have been operating as a “digital-asset fund manager without permission,” the SEC said, giving a Jan 12 deadline for clarification from Zipmex.

Zipmex Asia is being acquired for about US$100 million by V Ventures, a subsidiary of Thoresen Thai Agencies, a person familiar with the matter said last month. The Asian crypto exchange has been restructuring after falling victim to the prolonged bear market in virtual coins.

The regulator’s questions concern the Bangkok-based exchange’s ZipUP and ZipUP+ programmes, offered since October 2020 which allowed customers to earn returns on their tokens. Zipmex hired Babel Finance to operate and manage investments. The Block earlier reported on the probe.

A spokesperson for Zipmex declined to comment. The Thai Securities and Exchange Commission couldn’t immediately be reached for comment. BLOOMBERG

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