The Securities and Exchange Commission (SEC) of Thailand is investigating cryptocurrency exchange Zipmex for allegedly violating local business rules.

According to Bloomberg, the SEC is looking into Zipmex’s offerings of certain digital asset products. Zipmex has until January 12 to clarify whether it has been operating without proper permission in Thailand.

Zipmex is currently in the process of being acquired by V Ventures, a subsidiary of Thoresen Thai Agencies PCL, for around $100 million.

The investigation began in late 2020, when the SEC filed a police report on Zipmex for allegedly providing ‘incomplete’ information in its compliance procedure materials.

This comes after Zipmex faced financial turmoil in July 2022, which included halting withdrawal and freezing accounts.

The Thai SEC has recently 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.