Thai SEC targets country’s biggest crypto exchange Bitkub (again)
Financial regulators in Thailand are on the crypto warpath, and their target is Bitkub, the country’s largest digital asset exchange, and not for the first time.
For the second time in a month, Thailand’s Securities and Exchange Commission has targeted Bitkub, the kingdom’s largest crypto exchange.
According to a September 27 announcement (translated), the SEC is taking legal action against Bitkub and two individuals for “creating artificial volumes of digital assets” on the platform. This is often referred to as “wash trading”, which is a process where investors buy and sell the same assets at the same time to manipulate the market by inflating volumes.
The lawsuit, filed in a civil court, seeks a civil penalty and costs of about $634,000 from the firm, Anurak Chuachai and Sakon Srakawee, and includes a six-month trading ban for the pair.
Repeated penalties for Bitkub
In another case related to Satang Corporation, the SEC took action against two individuals seeking a fine of about $317,000 for similar volume manipulation.
According to CoinGecko, Bitkub has a daily volume of $62 million, making it the most popular digital asset exchange in Thailand. The exchange offers 75 coins and trading pairs, the most popular being Tether to Thai Baht (USDT/THB).
It is not the first time the SEC has taken action against Bitkub. In late August, Bitkub Chief Technology Officer Samret Wajanasathian was ordered to pay a fine of around $235,000 for insider trading.
In May, the Securities and Exchange Commission fined Bitkub and five members of the selection committee for digital assets for non-compliance with the rules for listing digital assets. The $65,000 fine was for an alleged conflict of interest when the exchange listed its own native token, KUB.
Perhaps the biggest blow to Bitkub was when Thailand’s oldest bank (Siam Commercial Bank) pulled out of a $500 million deal to buy a 51% stake in the company in August. The bank cited regulatory concerns over the decision.
Mixed signals for crypto in Thailand
Crypto trading and investing is extremely popular in Thailand, but the central bank and military government-backed financial regulators have other ideas.
The SEC has been tightening the screws on crypto companies recently, and central bank governors have reiterated their stance that digital assets are not legal tender and should not be used for payments.
Meanwhile, Thailand’s Ministry of Tourism is trying to tout the country as crypto-friendly in an effort to revive the heavily battered tourism sector.
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