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SEC charges Zipmex Thailand for regulatory breaches

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The Securities and Exchange Commission (SEC) has filed charges against Zipmex Thailand. The police complaint reports that the exchange is violating the regulatory framework of the SEC. The charges involve the business and its Chief Executive Officer and co-founder, Akalarp Yimwilai.

Zipmex Thailand is a crypto exchange that suffered from an industry-wide downturn caused by high debts and leverages. It loaned money to the faltered crypto companies: Celsius and Babel Finance.

It lent a total of over $50 million to these firms. However, both have failed to pay back the exchange, and Celsius has even filed for bankruptcy. This led Zipmex to freeze withdrawals.

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Thai SEC allegations on Zipmex

The SEC has released an official statement about the charges against the cryptocurrency firm. According to the report, the regulatory body claimed to order the concerned firm to declare transactional details about digital assets. It gave the firm’s officials an apt timeframe for providing the information.

However, the firm did not follow the order and provided incomplete transactional information after the deadline. The firm also failed to give any reasonable excuse for it. This led the regulators to take action and file charges against it.

The regulators also said that these actions are deemed as non-compliance. Moreover, they mentioned that it could be penalised under Section 75 of the Digital Assets Act.

Zipmex Thailand’s stance

On the other hand, the company also responded to these charges via a press release. According to it, the company received a letter from the SEC for the declaration of transactional details of digital assets on 2 September 2022.

It clarified that the company is currently compiling the pertinent documents for this matter. They said that Zipmex Thailand is further reviewing the records of Zipmex Pte. Ltd., which does not fall under the Thai regulator’s jurisdiction.

Moreover, the statement emphasised that information disclosure must be handled with diligence for the company’s data privacy. It also assured the customers that the company was taking the matter by prioritising their interests.

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Author: Wasay Ali

Author: Wasay Ali

I'm a content writer with adequate SEO knowledge. My hobby is to exercise, read and write. My writing experience currently expands to 2 years and I’ve worked on multiple niches, including finance. My versatility and research skills make me the best at what I do: content & SEO writing. I love writing because it pitches in and helps me learn new things daily.


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