(Bloomberg) -- Thailand’s securities regulator is probing whether embattled crypto exchange Zipmex, which is in the midst of being taken over, breached local rules in its offer of certain digital-asset products.

The nation’s Securities and Exchange Commission wrote to Zipmex Thailand’s Chief Executive Officer Akalarp Yimwilai on Dec. 28 noting that some of the firm’s activities may be in violation of digital-asset business rules, according to a letter seen by Bloomberg News.

The company could have been operating as a “digital-asset fund manager without permission,” the SEC said, giving a Jan. 12 deadline for clarification from Zipmex.

Zipmex Asia Pte. is being acquired for about $100 million by V Ventures, a subsidiary of Thoresen Thai Agencies Pcl, a person familiar with the matter said last month. The Asian crypto exchange has been restructuring after falling victim to the prolonged bear market in virtual coins.

• Read more: Crypto Firm Zipmex to Get $100 Million Venture Capital Buyout

The regulator’s questions concern the Bangkok-based exchange’s ZipUP and ZipUP+ programs, offered since October 2020 which allowed customers to earn returns on their tokens. Zipmex hired Babel Finance to operate and manage investments. The Block earlier reported on the probe.

A spokesperson for Zipmex declined to comment. The Thai Securities and Exchange Commission couldn’t immediately be reached for comment.

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--With assistance from Anuchit Nguyen.

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