Thailand’s largest crypto exchange Bitkub is under the supervision of the country’s Securities and Exchange Commission (SEC) due to the possible falsification and creation of artificial trading volume on the platform.
Getting into trouble
The SEC is also reportedly already taking legal action against the crypto exchange. 2 persons would have claimed that the crypto platform was involved in wash trading. This is a process in which investors buy and sell the same assets at the same time in order to manipulate the market by inflating volumes.
The Thai crypto exchange has become known to the enforcement agencies because of this, as it would be the 2nd punishment for the crypto exchange within just 3 months. The chairman of Bitkub Capital Group Holdings, Sakolkorn Sakavee, was previously fined $216,000 (about €226,000). A year earlier in July, this year’s Sakavee was banned from executive positions in the company. This suggests that the exchange is struggling with several problems at the same time.
6-month trade ban
In the lawsuit filed by the Thai SEC against the exchange, a civil penalty and payment of expenses totaling approximately $635,000 (approximately €664,000) are demanded. Also, a 6-month trade ban is demanded against 2 employees of the exchange.
Bitkub is one of the largest crypto exchanges in Thailand. Millions are traded on the platform every day. The platform is also plagued by regulatory actions. The exchange’s technical director, Samret Wajanasathian, was reportedly fined 8,530,383 Baht (about €235,000) at the end of August on charges of insider trading.
The crypto exchange also suffered a major setback last month when Thailand’s oldest bank, Siam Commercial Bank, scrapped its $500 (€523) million funding plans.
Where Thailand was once seen as one of the most crypto-progressive countries in the world, things are different today. Indeed, several leading crypto exchanges have faced regulatory and compliance challenges in the country from time to time. Even companies like Binance and Huobi have struggled with regulatory compliance.