The cryptocurrency exchange Zipmex is the focus of a new probe by the Securities and Exchange Commission (SEC) of Thailand for a breach of local rules. 

A Bloomberg report revealed that local authorities are looking into activities that they believe may violate business rules for digital asset service providers. This includes its offerings of certain digital asset products.

According to the Thai SEC, Zipmex has until Jan. 12 to clarify whether it has been functioning as a “digital asset fund manager without permission” in Thailand. If true, the firm would have needed to obtain a permit before conducting business in the country.

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Zipmex is currently in the process of being acquired by V Ventures, a subsidiary of Thoresen Thai Agencies PCL, for around $100 million. The exchange allegedly plans to unfreeze customer accounts using funds from the acquisition by April 2023.

Cointelegraph reached out to Zipmex for clarification on the issue.

Related: Thai SEC approves four crypto firms despite Zipmex woes

The situation between Zipmex and the Thai SEC has been underway since late last year. On Sep. 7 the agency filed a police report on Zipmex, which alleged ‘incomplete’ information given by the cryptocurrency exchange in its compliance procedure materials.

This all comes after Zipmex publicly faced financial turmoil back in July 2022, which included halting withdrawal and freezing accounts. The strain was due to a prolonged bear market which shuttered a number of businesses in the industry, as well as mass layoffs

Zipmex had been in discussions with the Thai SEC in August for a potential recovery plan. 

The Thai regulator has since announced plans to tighten rules for crypto with investor protection as its main focus. It also intends to create strict guidelines for crypto ads, along with a country-wide ban of crypto lending.