- This is the second charge against Bitkub this year
- SEC is cracking down on exchanges with massive fines
- Two individuals associated with the Satang exchange also fined
SEC accuses individuals and Bitkub with ‘wash trading‘
A September 27 notice by the Securities and Exchange Commission (SEC) of Thailand charged Bitkub and two individuals with “creating artificial volumes of digital assets” on the exchange platform. Creating artificial volumes in the market is called ‘wash trading.’ It involves offenders buying and selling assets at the same time, thereby inflating volume.
Bitkub and the two accused, Anurak Chuachai and Sakon Srakawee will have to pay $634,000 in investigation expenses apart from the civil fine. Also, the Chuachai and Srakawee will be prohibited from trading for 6 months.
Regulatory concerns affecting digital economy
Siam Commercial Bank (SCB), which is Thailand’s oldest bank, pulled out of a deal worth $500 million with Bitkub due to regulatory issues.
In May, 5 members of Bitkub’s digital assets selection committee were fined $65,000 for noncompliance with the authority’s laws on listing digital assets. The exchange had launched its token KUB which created a conflict of interest as per the law.
Last month, Bitkub’s Chief Technical Officer (CTO) Samret Wajanasathian was fined $235,000 for insider trading. Apparently, he was aware of the deal with SCB and purchased KUB tokens worth 1.99 million Thai baht. KUB’s price doubled after the deal with SCB was announced.
Bitkub offers 75 coins and pairs on its platform. As per Coingecko, the daily trade volume is $62 million. By trade volume, it is the largest exchange in Thailand.
Another crypto exchange, Satang Corporation, is embroiled in a case involving Fair Expo and a man; two individuals have been fined $317,000 in the case.
Source: https://www.thecoinrepublic.com/2022/09/28/thailands-sec-to-take-legal-action-against-crypto-exchange-bitkub-and-two-individuals/