Legal action is being taken against business entities for allegedly creating an artificial volume of digital assets on crypto-currency exchanges.
The Securities and Exchange Commission (SEC) said it issued civil sanctions against Anurak Chuachai, Sakon Srakawee, and crypto-currency exchange Bitkub of about 24.2 million baht. The agency also banned these offenders from trading crypto assets or derivatives for six months and prohibited them from serving as directors or executives of a digital asset firm for a year.
In August, the Thai SEC issued an 8.53-million baht fine to Bitkub’s chief technology officer following an insider trading investigation.
In the second case involving Bangkok-based Satang Corp, the SEC imposed civil sanctions on LLC Fair Expo and Mikalai Zahorski for similar offenses, requesting 12.1 million baht in fines as well as trading ban periods.
Creating fake volume, also known as wash trading, is an illegal practice used to lure traders into investing under the premise that a particular asset is more popular than it actually is.
The SEC has taken a more aggressive stance on crypto-currency in light of the recent market implosion. The regulator recently filed a police complaint against crypto exchange Zipmex and its CEO for failing to cooperate with its request for information on how the company maintained its assets. The SEC also prohibited crypto-currency companies from providing staking or lending services in order to safeguard traders from market risk. (NNT)
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