Thailand's largest cryptocurrency exchange, Bitkub, has been investigated by the country's Securities and Exchange Commission (SEC) for falsifying and creating artificial trading volume on its platform.
The Thai Securities and Exchange Commission (SEC) ordered legal action against the crypto exchange and two individuals, alleging that the crypto platform engaged in wash trading, a practice in which investors buy and sell the same assets at the same time in order to manipulate the market by inflating volumes.
The latest enforcement action against the leading Thai crypto exchange would be the crypto exchange's second penalty within three months. Sakolkorn Sakavee, the chairman of Bitkub Capital Group Holdings, was fined $216,000 and prevented from holding managerial positions in the company for a year earlier this year.
According to an official statement issued by the SEC on September 27, the regulatory body has filed a lawsuit against the cryptocurrency exchange and the two individuals, seeking a civil fine and expenses of approximately $634,000, as well as a six-month trading ban for the pair.
Bitkub is one of Thailand's top cryptocurrency exchanges, with daily trading volumes of millions. However, the crypto exchange has also been the target of regulatory action in recent months. Samret Wajanasathian, the exchange's chief technical officer, was fined 8,530,383 baht ($234,000) for insider trading near the end of August.
Last month, Thailand's oldest bank, Siam Commercial Bank, canceled its $500 million funding plans for the crypto exchange.
Thailand was once regarded as one of the world's most crypto-progressive countries, thanks to a regulated crypto market and tax breaks for crypto traders. However, several major cryptocurrency exchanges have encountered regulatory and compliance issues in the country from time to time. Even Binance and Huobi have had difficulties with regulatory compliance.