2022 has been confirmed to be a regulatory disaster for Thailand’s largest crypto exchange as it has confronted multiple administration actions and fines worth hundreds of thousands of dollars.
Thailand’s largest crypto exchange Bitkub has come under regulatory scrutiny from the country’s Securities and Exchange Commission (SEC) over fabricating and creating artificial trading volume on its platform.
Thai SEC ordered legal action against the crypto exchange and two individuals claiming the crypto platform was involved in wash trading, a process where investors buy and sell the same assets at the same time in order to deploy the market by expanding volumes.
The latest execution action against the leading Thai crypto exchange would be the second penalty for the crypto exchange within three months. Bitkub Capital Group Holdings Chairman Sakolkorn Sakavee was penalized $216,000 and banned from managerial roles in the firm for a year earlier in July this year.
According to an official declaration by the SEC dated Sept. 27, the regulatory body has filed a lawsuit against the crypto exchange and the two individuals, seeking a civil fine and expenses of around $634,000 and a six-month trading prohibition for the duo.
Bitkub is among the top crypto exchanges in Thailand, conceited daily trading volumes of millions. However, the crypto exchange has also been at the receiving end of regulatory actions over the past few months.
The crypto exchange also faced a major setback last month by Thailand’s oldest bank Siam Commercial Bank.
Thailand was once seen as one of the most crypto-progressive nations in the world. However, numerous leading crypto exchanges have faced regulatory and compliance challenges in the country from time to time. Even the likes of Binance and Huobi have wriggled with regulatory compliance.
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