– The Securities and Exchange Commission (SEC) of Thailand is investigating Zipmex to ascertain if its earn products breached regulatory rules.
– The SEC has sent a letter to Zipmex on Dec. 28 stating that the ZipUp and ZipUP+ products were in violation of the digital-asset business rules.
– The SEC has urged Zipmex to come forward to clarify its status on or before Jan. 12.
The Securities and Exchange Commission (SEC) of Thailand is currently investigating Zipmex to determine whether its earn products violated regulatory rules. The investigation began after the SEC sent a letter to Zipmex on December 28th, 2020, which stated that their ZipUp and ZipUp+ products did not comply with digital asset business regulations.
The SEC believes that Zipmex may have been operating as a digital asset fund manager without the proper authorization. This is concerning, as Zipmex is not licensed to do so. To rectify this, the SEC has instructed Zipmex to explain their status before January 12th, 2021.
This investigation is taking place only a month after news broke that V Ventures had agreed to acquire Zipmex for $100 million. However, this deal may be in jeopardy if Zipmex is found to be in violation of any regulatory laws.
In July of 2022, Zipmex shut down withdrawal services due to insolvency concerns. This prompted the SEC to investigate further and request access to the exchange’s transaction records and wallet information. In response, Zipmex claimed it was following all of the necessary regulations.
Ultimately, the SEC must determine if Zipmex has been acting in accordance with the law. If not, the consequences could be severe. Zipmex could face fines and other penalties, as well as the potential dissolution of their proposed acquisition by V Ventures. For now, Zipmex has been urged to clarify their status before the deadline set by the SEC.