Thailand’s largest crypto exchange Bitkub has come under scrutiny from the country’s Securities and Exchange Commission (SEC) for falsifying and creating artificial trading volume on its platform.
The Thai SEC ordered legal action against the exchange and two individuals, alleging that the cryptocurrency platform was involved in “wash trading” or transaction laundering, a process in which investors buy and sell the same assets at the same time to manipulate the market by inflating volumes.
The latest enforcement action against the major Thai cryptocurrency exchange would be its second sanction in three months. Bitkub Capital Group Holdings Chairman Sakolkorn Sakavee was fined $216,000 and banned from holding management roles at the company for one year in early July this year.
According to an official SEC statement dated September 27, the regulator has filed a lawsuit against the exchange and two individuals, seeking a civil penalty and expenses of around $634,000 and a six-month trading ban for the duo.
Cointelegraph had no response from Bitkub at press time.
Bitkub is one of the top cryptocurrency exchanges in Thailand, boasting a daily trading volume in the millions. However, it has also been on the receiving end of regulatory actions in recent months. The exchange’s chief technical officer, Samret Wajanasathian, was fined 8,530,383 baht ($234,000) in late August on charges of insider trading.
The cryptocurrency exchange also suffered a major setback last month when Thailand’s oldest bank, Siam Commercial Bank, scrapped its $500 million funding plans.
Thailand was once considered one of the most progressive crypto nations in the world, thanks to a regulated market and tax breaks for crypto traders. However, several major exchanges have faced regulatory and compliance challenges in the country from time to time. Even companies like Binance and Huobi have struggled with compliance.
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