Zipmex is being investigated by the Thai SEC prior to its acquisition

  • The Thai Securities and Exchange Commission is reportedly investigating whether Zipmex violated local regulations.
  • Ventures acquires Zipmex for $100 million.

Cryptocurrency exchange Zipmex has become the subject of an investigation by the Securities and Exchange Commission (SEC) in Thailand. A securities regulator in Thailand is investigating the exchange to determine whether it violated local rules when it offered certain digital asset products.

Zipmex digital asset products are under review

According to a report dated January 10 bloombergThe Thai Securities Commission (SEC) noted that some of Zipmex’s activities may violate local digital asset business regulations. The same was conveyed in a letter to Akalarp Yimwilai, the CEO of the crypto exchange.

The SEC believed that Zipmex may have acted as an “unlicensed digital asset fund manager”. The securities regulator has given the cryptocurrency exchange until January 12th to clarify the matter.

Zipmex’s ZipUP and ZipUP+ software are the products in question. These products have been offered to exchange clients since October 2020. Both products are managed and operated by Babel Finance. Exchange clients can earn returns on their tokens through these programs.

Check during the Ventures acquisition of Zipmex

The Thai SEC investigation comes at a critical time for Zipmex. The Bangkok-based cryptocurrency exchange is currently being acquired by Ventures, a subsidiary of Thoresen Thai Agencies Pcl.

The acquisition is said to be worth $100 million and will give Ventures a 90% stake in the cryptocurrency exchange. It is basically a bailout for clients of the exchange who have been struggling to get their money back since the switch suspended Withdrawing in July 2022.

It was Thai SEC issued A warning to investors looking to strike a deal with the struggling cryptocurrency exchange last month.

The organizer said:

“The SEC has received complaints from Zipmex customers that the non-disclosure agreement is unclear and unfair, and the SEC shares that view. We also found that these personal agreements lack information essential to a customer’s decision.”

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