Thai SEC Grants License to Asian Crypto Exchange Zipmex

Asia-Pacific cryptocurrency exchange Zipmex has acquired the green light from Thailand’s SEC, receiving the country’s coveted digital assets exchange license, the The Block reported on 20 January.

According to the report, the exchange had to meet “several stringent conditions” in order to obtain the license from Thailand’s Securities and Exchange Commission. Among others, the company had to prove it had robust finances by having shareholder equity of at least 50 million baht (around $1.6 million), and high standard in its IT and cybersecurity systems.

It took the exchange, which currently operates in Singapore, Indonesia and Australia, a full year to receive the license, with it having started the process early last year. After acquiring the license, the digital assets operator will now be classified as a financial institution under Thai law, and must comply with Anti Money Laundering reporting obligations.

Akalarp Yimwilai, Zipmex co-founder and CEO of the exchange’s Thailand unit, told The Block:

“Being licensed and regulated by the SEC was always our main priority as we believe that being a regulated entity will help provide trust to newcomers looking to enter the digital assets market.”

A total of 20 crypto firms had applied for a license in August 2018, but only four were awarded with a digital asset business license last year. The approvals were followed by an amendment to the country’s Securities and Exchange Act in February 2019, which allowed tokenized securities to be issued and traded in the country.

Though Zipmex’s services in Thailand are yet to go live, as the exchange is currently awaiting activation, the firm is expecting to launch the platform by the end of Q1 2020. To date, the company has raised a total of $5 million, with it closing a $3 million pre-Series A funding round, led by Infinity Blockchain Holdings, last September.

The Thai SEC is also planning to amend the country’s cryptocurrency law in 2020, considering that since it came into power in 2018, only five companies have been able to complete the certification, of which only two have launched. The Thai government will aim to accommodate the digital asset industry in the country, while still continuing to shield investors from possible risks.