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SEC orders Zipmex to rectify its net capital position and act in the best interest of clients

Saturday 25 November 2023 | No. 227 / 2023

Bangkok, 25 November 2023 – The Securities and Exchange Commission (SEC), having monitored Zipmex Co., Ltd. (Zipmex) financial condition and liquidity, has found that the company had not been able to maintain the minimum net capital as required by law* since 24 November 2023. Pursuant to Clause 16/1 of the SEC Notification No. Kor Thor. 19/2561 Re: Rules, Conditions and Procedures for Undertaking of Digital Asset Businesses, Zipmex is therefore ordered to suspend the operation of all types of businesses. The company may resume its business operations only when the net capital requirements are met, and the SEC written approval is obtained. The company must also inform its clients in writing about its business suspension without delay.

The SEC has ordered Zipmex, by virtue of Clause 13/1(3) of the said Notification, to take steps towards meeting the minimum net capital requirements, taking into account clients’ best interest as follows:

(1) Submit to the SEC the net capital maintenance rectification plan;

(2) Take steps according to the submitted plan under (1) to rectify the shortfalls within the specified period;

(3) Facilitate withdrawal or transfer of clients’ Thai baht and digital assets without disruptions;

(4) Ensure adequacy and readiness of the operational systems and personnel for the custody of clients’ assets and management of transactions as per clients’ orders under (3).

The SEC emphasizes the importance of monitoring financial condition and liquidity of business operators to make sure that they comply with the prescribed rules. In this regard, Zipmex clients may contact the company’s customer service center** or make inquiries at the SEC Public Service Center via hotline 1207 press 8, or email: info@sec.or.th, or Facebook page “the SEC Office”, or SEC Live Chat at www.sec.or.th.

______________________

Remarks:

* Related rules and regulations:

- Notification of the Office of the Securities and Exchange Commission No. Sor Thor. 73/2563 Re. Calculation and Report of Net Capital Calculations dated 4 December 2020 (“Notification No. Sor Thor 73/2563”) https://publish.sec.or.th/nrs/8138s.pdf

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

Clause 16/1 A derivatives business operator shall have duties to maintain the minimum net capital requirement by NC-1 method and failure to do so shall be subject to observing the following:

(1) Suspend all types of business operations until the minimum required net capital level can be maintained and the SEC Office’s approval for business resumption is obtained;

(2) Inform clients in writing about the business suspension without delay

(3) Do or omit to do any other acts as prescribed by the SEC Office to rectify the shortfall and maintain the net capital as required by law https://publish.sec.or.th/nrs/8138s.pdf

- Notification No. Kor Thor 19/2561, as amended by the SEC Notification No. Kor Thor 27/2565 (No. 18) https://publish.sec.or.th/nrs/9540s.pdf

Business operators with NC-1 capital maintenance method are as follows:

(1) Digital asset exchange

(2) Digital asset broker

(3) Digital asset dealer

(4) Digital asset fund manager, providing client asset custody services

(5) Digital asset advisory services, providing client asset custody services

(6) Business operators operating more than one digital asset businesses and providing client asset custody services

(7) Business operators under (1), (2) or (3) providing also digital asset advisory services: https://publish.sec.or.th/nrs/9540s.pdf

** Zipmex Co., Ltd. communication channels for customer relations (Source: Zipmex web site/ as of 16 November 2023)

1. Live Chat (only on web site)

2. Email: support.th@zipmex.com

3. LINE Official:@zipmex

4. Facebook: Zipmex Thailand

NEWS

Securities and Exchange Commission

Corporate Communication and Investor Service Department

Tel. (66)2033-9502-5 E-mail: press@sec.or.th

No. 227 / 2023	Saturday 25 November 2023
SEC orders Zipmex to rectify its net capital position and act in the best interest of clients
Bangkok, 25 November 2023 – The Securities and Exchange Commission (SEC), having monitored Zipmex Co., Ltd. (Zipmex) financial condition and liquidity, has found that the company had not been able to maintain the minimum net capital as required by law* since 24 November 2023. Pursuant to Clause 16/1 of the SEC Notification No. Kor Thor. 19/2561 Re: Rules, Conditions and Procedures for Undertaking of Digital Asset Businesses, Zipmex is therefore ordered to suspend the operation of all types of businesses. The company may resume its business operations only when the net capital requirements are met, and the SEC written approval is obtained. The company must also inform its clients in writing about its business suspension without delay.
The SEC has ordered Zipmex, by virtue of Clause 13/1(3) of the said Notification, to take steps towards meeting the minimum net capital requirements, taking into account clients’ best interest as follows: (1) Submit to the SEC the net capital maintenance rectification plan; (2) Take steps according to the submitted plan under (1) to rectify the shortfalls within the specified period; (3) Facilitate withdrawal or transfer of clients’ Thai baht and digital assets without disruptions; (4) Ensure adequacy and readiness of the operational systems and personnel for the custody of clients’ assets and management of transactions as per clients’ orders under (3). The SEC emphasizes the importance of monitoring financial condition and liquidity of business operators to make sure that they comply with the prescribed rules. In this regard, Zipmex clients may contact the company’s customer service center** or make inquiries at the SEC Public Service Center via hotline 1207 press 8, or email: info@sec.or.th, or Facebook page “the SEC Office”, or SEC Live Chat at www.sec.or.th. ______________________ Remarks: * Related rules and regulations: - Notification of the Office of the Securities and Exchange Commission No. Sor Thor. 73/2563 Re. Calculation and Report of Net Capital Calculations dated 4 December 2020 (“Notification No. Sor Thor 73/2563”) https://publish.sec.or.th/nrs/8138s.pdf - Notification of the Securities and Exchange Commission No. Kor Thor 19/2561 Re: Rules, Conditions and Procedures for Undertaking of Digital Asset Businesses dated 3 July 2018: Clause 16/1 A derivatives business operator shall have duties to maintain the minimum net capital requirement by NC-1 method and failure to do so shall be subject to observing the following: (1) Suspend all types of business operations until the minimum required net capital level can be maintained and the SEC Office’s approval for business resumption is obtained; (2) Inform clients in writing about the business suspension without delay (3) Do or omit to do any other acts as prescribed by the SEC Office to rectify the shortfall and maintain the net capital as required by law https://publish.sec.or.th/nrs/8138s.pdf - Notification No. Kor Thor 19/2561, as amended by the SEC Notification No. Kor Thor 27/2565 (No. 18) https://publish.sec.or.th/nrs/9540s.pdf Business operators with NC-1 capital maintenance method are as follows: (1) Digital asset exchange (2) Digital asset broker (3) Digital asset dealer (4) Digital asset fund manager, providing client asset custody services (5) Digital asset advisory services, providing client asset custody services (6) Business operators operating more than one digital asset businesses and providing client asset custody services (7) Business operators under (1), (2) or (3) providing also digital asset advisory services: https://publish.sec.or.th/nrs/9540s.pdf ** Zipmex Co., Ltd. communication channels for customer relations (Source: Zipmex web site/ as of 16 November 2023) 1. Live Chat (only on web site) 2. Email: support.th@zipmex.com 3. LINE Official:@zipmex 4. Facebook: Zipmex Thailand

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