The Securities and Exchange Commission (SEC) of Thailand is investigating Zipmex to ascertain if its earn products breached regulatory rules.

According to a Bloomberg News report, Thailand’s SEC sent a letter to Zipmex on Dec. 28 stating that the ZipUp and ZipUP+ products were in violation of the digital-asset business rules.

Zipmex allowed its customers to earn returns for holding their assets in the ZipUp and ZipUp+ earn products.

Due to the nature of Zipmex’s earn products, the SEC alleged that the exchange was unduly operating as a fund manager.

(By Christian Nwobodo)