Thai SEC sues Bitkub Crypto Exchange for alleged wash trading
Thailand was the first in Southeast Asia to implement digital asset regulations in 2018. The move attracted cryptocurrency investors. After that, however, the crypto industry began to face setbacks as regulators tightened rules amid trading irregularities and the collapse of a top exchange.
On September 1, the SEC adopted new rules for digital advertising. The rules prevent digital asset firms from presenting misleading information that requires them to include the risks of investment products in advertisements. The firms were also mandated to amend all existing advertisements to comply with the new rules within 30 days of issuing a notice.
Thai regulators’ more law enforcement actions in 2022 affect the crypto market. Thai Securities and Exchange Commission (SEC) activities caused a reduction in trading volume. Also, the number of active crypto accounts since the beginning of the year has decreased by 33%.
Bitkub, the largest digital currency exchange in Thailand, caught the Thai SEC’s attention this time. On September 27, the Thai Securities and Exchange Commission filed a lawsuit against Bitkub and two individuals.
Bitkub pays a $634,000 fine for alleged crypto-laundering
The SEC alleged that the exchange and two others created artificial trading volumes on the platform to manipulate the market. In an official statement, the watchdog is seeking a $634,000 civil fine against Bitkub and a two-month trading ban against the two individuals.
In July, the chairman of BitKub Group Holdings was fined $216,000 and banned for one year from holding executive roles in the company. The SEC lawsuit makes it the second direct enforcement action against Bitkub this year.
Bitkub is one of the largest digital currency exchanges in Thailand, with millions of trading volume daily. The firm operates a centralized system and currently has 75 coins and 75 trading pairs listed on its trading platform.
In recent months, Bitkub has been under regulatory pressure from the SEC. Bitkub CTO Samrat Wajanasathian was fined 8,530,383 baht (about $234,000) in August. The Thai SEC alleged that Wajanasathian did an insider deal that dropped KUB by 101%.
Siam Commercial Bank withdraws plans for $500 million Bitkub financing
Bitkub suffered a setback in August when Siam Commercial Bank canceled plans for $500 million in Bitkub financing. Siam Commercial Bank is the oldest bank in Thailand and announced a plan to become the crypto exchange’s main shareholder in November 2021.
The Thai crypto industry was the world’s fastest growing due to its regulated crypto market and tax exemption for traders.
However, the clocks have turned as crypto exchanges face difficult regulatory enforcement. Top exchanges such as Huobi and Binance also have issues with regulatory enforcement.
The Thai SEC announced regulatory measures against Binance in July 2021. The regulator launched a criminal investigation against the giant crypto exchange for allegedly operating without a license.
Featured image from Pixabay, Chart: TradingView.com
