• Crypto exchange Zipmex is the focus of a new probe by the Securities and Exchange Commission (SEC) of Thailand for a breach of local rules.
• Local authorities are looking into activities that they believe may violate business rules for digital asset service providers.
• Zipmex is currently in the process of being acquired by V Ventures, a subsidiary of Thoresen Thai Agencies PCL, for around $100 million.
The cryptocurrency exchange Zipmex is being investigated by the Securities and Exchange Commission (SEC) of Thailand after local authorities found potential violations of local rules for digital asset service providers. According to the Thai SEC, Zipmex has until Jan. 12 to clarify whether it has been functioning as a “digital asset fund manager without permission” in Thailand. If true, the firm would have needed to obtain a permit before conducting business in the country.
The SEC is looking into activities that may be in violation of business rules for digital asset service providers. This includes offerings of certain digital asset products by Zipmex. The probe could have serious implications for the exchange, as it would be in breach of local regulations and could lead to hefty fines or other penalties.
The news of the investigation comes as Zipmex is in the process of being acquired by V Ventures, a subsidiary of Thoresen Thai Agencies PCL, for around $100 million. The exchange allegedly plans to unfreeze customer accounts using funds from the acquisition by April 2023.
The acquisition is part of a larger effort by the exchange to expand its presence in the region. Zipmex is currently operating in Singapore, Indonesia, and Thailand. The company is aiming to become a leading crypto exchange in the Asia-Pacific region, and the acquisition of V Ventures will help the company achieve its goal.
It remains to be seen how the SEC probe will affect Zipmex’s plans for expansion. If the exchange is found to be in violation of local regulations, it could face serious consequences. It is unclear what the outcome of the investigation will be, but the potential implications of a violation could be far-reaching. For now, Zipmex will have to wait and see how the situation develops.