Bangkok, 23 February 2024 – The Securities and Exchange Commission Board (SEC Board) has passed a resolution to recommend the revocation of digital asset business license of Zipmex Co., Ltd. (Zipmex) for the Minister of Finance’s consideration. Meanwhile, as long as Zipmex continues its business operations, the company is subject to business suspension and is required to return assets to its clients or proceed as per their requests. If the clients do not claim their assets, Zipmex must deposit them in a trusted and secure system to protect the clients’ interests.  

Due to its failure to maintain net capital in compliance with the governing law and its inappropriate and insufficient management structure and personnel, Zipmex may be liable to offenses related to client assets, which may potentially harm public interests. Therefore, in its meeting on 1 February 2024, the SEC Board, by virtue of Section 35, Paragraph 2, of the Emergency Decree on Digital Asset Businesses B.E. 2561 (2018) (the Digital Asset Business Law), resolved to suspend Zipmex business operations and instructed the company to fully rectify its operations within 15 days. However, upon the rectification deadline, Zipmex failed to solve its deficiencies.   

Therefore, at its meeting on 21 February 2024, the SEC Board passed the following resolutions:    

          (1) By virtue of Section 35, Paragraph 2, of the Digital Asset Business Law, specifying    additional conditions to protect the clients’ interests whereby Zipmex business suspension must continue throughout the time when the company is in operation, and the clients’ assets must be returned or proceeded as per the clients’ requests within 15 days from the date when the SEC notifies the company in writing of the SEC Board’s resolutions. (The deadline falls on 11 March 2024).
               In the event that any client does not notify his or her intention or claim assets within deadline, Zipmex must arrange for the deposit of the client’s assets in a trusted and secure system within 30 days from the deadline under (1) and must report each procedural step of its action for the SEC’s information without delay.    

           (2) By virtue of Section 35, Paragraph 3, of the Digital Asset Business Law, recommending the revocation of Zipmex digital asset business license for the Minister of Finance’s consideration.  

In any event, Zipmex remains a digital asset business operator under the SEC’s supervision and is required to comply with the Digital Asset Business Law along with any relevant rules and regulations established under the law. This requirement remains in effect until the Minister of Finance approves the revocation of the company’s license. However, even after the effective revocation of its license, Zipmex retains its status as a limited company with corresponding rights, responsibilities and liabilities, including the possibility of being subject to legal action.

In this regard, Zipmex clients may contact the company to retrieve own assets deposited with the company through Zipmex’s official communication channels. Further inquiries may be sent to the SEC Complaint Center via Hotline 1207 ext. 8, or email: info@sec.or.th, or Facebook Page: “SEC Office”, or SEC Live Chat at www.sec.or.th.

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Remarks: 

Zipmex’s official communication channels: https://updates.zipmex.co.th/?page_id=289310&lang=th    
           Email: support.th@zipmex.com
           Facebook Page: Zipmex Thailand
           Line Official: @zipmex

SEC News and related rules and regulations:

- SEC News No. 33/2024: “SEC files a criminal complaint against former director and CEO of Zipmex for making false statements or concealing facts that should have been disclosed to the public,” released on 8 February 2024.

https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=10544&NewsNo=33&NewsYear=2024&Lang=EN.

- SEC News No. 30/2024: “SEC orders temporary suspension of Zipmex services as digital asset exchange and digital asset broker,” released on 2 February 2024.
https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=10527&NewsNo=30&NewsYear=2024&Lang=EN.

- SEC News No. 13/2024: “SEC instructs Zipmex to rectify operations in compliance with the specified rules within 15 days,” released on 13 January 2024.
https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=10450&NewsNo=13&NewsYear=2024&Lang=EN.

- SEC News No. 227/2023: “SEC orders Zipmex to rectify its net capital position and act in the best interest of clients,” released on 25 November 2023.
https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=10490&NewsNo=227&NewsYear=2023&Lang=EN.

- Notification of the Securities and Exchange Commission No. Kor Thor 19/2561 Re: Rules, Conditions and Procedures for Undertaking Digital Asset Businesses, dated 3 July 2018: https://publish.sec.or.th/nrs/8138s.pdf.

- Emergency Decree on Digital Asset Businesses B.E. 2561 (2018) https://www.sec.or.th/EN/Documents/ActandRoyalEnactment/RoyalEnactment/enactment-digitalasset2018.pdf.

           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.