On 25 November 2023, the SEC ordered Zipmex to rectify its financial condition to comply with the rules on fund maintenance as the company failed to do so and subsequently suspended its business operations as mandated by law. On 8 December 2023, the company notified that it still could not meet the fund requirements. Moreover, the SEC detected the company’s lack of personnel readiness and on 1 December 2023 sent a letter to the company, requiring a written clarification on the issue, which the company failed to provide. Moreover, there may be considerations regarding offenses related to client assets.  

During the SEC Board Meeting No. 1/2567 convened on 11 January 2024, the SEC Board, by virtue of Section 35, Paragraph 1, under the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018), as per the specified legal procedures, passed a resolution requiring Zipmex to rectify its operations within 15 days regarding the failure to manage its business and personnel properly, adequately and efficiently, by taking the following actions:   

  (1) Amend the company’s financial condition to comply with the fund requirements as prescribed in Clause 15 of the SEC Notification No. Kor Thor. 19/2561 Re: Rules, Conditions and Procedures for Undertaking of Digital Asset Businesses, as amended; 

(2) Revise the management and personnel structures to ensure proper and adequate structures for conducting business efficiently. Such personnel must possess suitable knowledge, competency, and experience, as prescribed in Clause 8 and Clause 10 of the SEC Notification No. Kor Thor. 19/2561;    

  (3) Establish a work system that prevents the use of client assets in the company’s custody to engage in any activities or seek benefits, regardless of the means. This includes putting in place separate accounts for each client that contain accurate, complete, and up-to-date information in the event of returns mandate of client assets.  

The SEC emphasizes the importance of monitoring the operations of business operators, including tracking the reporting of information related to client assets on a daily basis, to ensure that business operators comply with the prescribed rules. In this case, it is advisable that Zipmex clients contact the company's customer service center, and for further inquiries, they may also reach out to the SEC Complaint Center via Hotline 1207, ext. 8, or email: info@sec.or.th, or visit the SEC Official Facebook Page: “สำนักงาน กลต,” or SEC Live Chat at www.sec.or.th. 

Mr. Anek Yooyuen, SEC Deputy Secretary-General and Spokesperson, said: “According to the specified legal procedures, any digital asset business operator failing to comply with Section 35 of the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018) may subject to consideration of license revocation.” 

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News and relevant laws:  

- SEC News No. 227/2023: SEC instructs Zipmex to rectify the fund condition and proceed in the best interest of clients, released on 25 November 2023. 

- Notification of the Securities and Exchange Commission No. KorThor. 19/2561 Re: Rules, Conditions and Procedures for Undertaking of Digital Asset Businesses dated 3 July 2018, as amended. 

- The Emergency Decree on Digital Asset Businesses B.E. 2561 (2018): 

Section 35: If it appears that the financial condition or operations of a digital asset business operator is in such condition which may cause damage to the public, or a digital asset business operator violates or fails to comply with the prescribed rules, procedures and conditions, the SEC may order the digital asset business operator to rectify it within the specified period of time.  

If the digital asset business operator fails to comply with the first paragraph, the SEC may order the digital asset business operator to temporarily suspend its operations either in whole or in part within the specified period of time for the rectification. In this regard, the SEC may also specify any condition to be complied with by the digital asset business operator for the purpose of rectifying the financial conditions or operations of such digital asset business operator.  

If the digital asset business operator fails to comply with the second paragraph, or in the case of repeated non-compliance, the Minister, upon the recommendation of the SEC, may consider revoking its licence. In this regard, the Minister, upon the recommendation of the SEC, may order the digital asset business operator whose licence is revoked to take any action to protect the interest of its clients.