Enables UFM1 hydrolase activity and thiolester hydrolase activity. Acts upstream of or within proteolysis. Is expressed in several structures, including diaphragm; limb segment; nervous system; skeletal musculature; and thymus primordium. Orthologous to human UFSP1 (UFM1 specific peptidase 1 (inactive)). [provided by Alliance of Genome Resources, Apr 2022]