Thai regulators are investigating mining firms for stock manipulation

The Thai Ministry of Finance instructed the country’s Securities and Exchange Commission (SEC) to provide a report on the work of mining companies to identify possible market manipulations with shares.

The demand came from Thai Finance Minister Arkhom Termpittayapaisith after the Economic Crime Unit began investigating crypto-currency firms listed on the Stock Exchange of Thailand (SET). Regulators’ fears of manipulation have intensified amid the recent market decline. This resulted in the liquidation of $673 million in margin positions and caused investors heavy losses.

The Treasury Secretary said he had not received a report from the SEC on at least 10 cryptocurrency mining companies. He recommended the regulator to interact with the police on this issue. Termpitthayapaisit noted that cooperation with law enforcement agencies does not mean tightening control over companies whose shares are traded on stock exchanges, since the SEC is already strictly implementing its policy of supervising these firms.

Economic Crime Squad Major General Puttidej Boonkraprue said his unit is already investigating about 25 mining companies listed on SET. The agency suspects that these firms may have deliberately disseminated information to inflate their stock prices.

Bunkraprue explained that many companies are on the cusp of the mining industry and have yet to realize their plans. Some SET-listed firms have signaled intentions to buy cryptocurrency mining hardware, which has seen their stocks skyrocket. However, they still have not made a purchase of equipment and have not invested in cryptocurrencies.

This month, the Thai government announced that it would introduce amendments to the country’s legislation that would expand the powers of the country’s central bank to oversee the cryptocurrency industry. Recently, the Thai SEC also warned users about the risks of investing in decentralized finance (DeFi).