The beleaguered journey of crypto exchange Zipmex takes another hit as Thai regulators announce the revocation of its business license. The Securities and Exchange Commission (SEC) of Thailand has deemed Zipmex non-compliant with regulatory orders, citing concerns over financial instability and inadequate management practices.

In a press release dated June 11, the SEC disclosed its decision to recommend the Ministry of Finance to revoke Zipmex’s license due to repeated failures to address regulatory concerns within stipulated timeframes. Despite multiple directives to rectify issues related to financial stability and management practices, Zipmex remained non-compliant, leading to the decisive action by Thai authorities.

The Ministry's decision mandates Zipmex to cease all crypto operations immediately and initiate the process of transferring customers’ assets back to them within a 15-day period. In the event of unclaimed assets, Zipmex is required to securely store them for up to 30 days and meticulously report each step of the process to the SEC. At present, Zipmex has not issued any public statements regarding the license revocation.

Zipmex, established in 2018 and headquartered in Singapore, had suspended its trading activities in Thailand back in November 2023. This move came amidst penalties imposed by the SEC for alleged misuse of a crypto custodian service and directing customers to the Singapore-based Zipmex Pte exchange, raising concerns over conflicts of interest. Additionally, Zipmex operates in Australia and Indonesia.

The regulatory challenges in Thailand add to Zipmex’s woes, as its rehabilitation efforts have faced setbacks following significant losses exceeding $50 million. These losses were incurred due to the exchange's exposure to the bankruptcies of Babel Finance and Celsius Network in 2022, further complicating its path to recovery.

As Zipmex navigates through these regulatory hurdles and financial setbacks, its future remains uncertain, with stakeholders closely monitoring developments and awaiting further updates on the exchange's next steps in light of the license revocation.