Announcement on Guidelines for Preventing Unfair Practices in Digital Asset Trading

Announcement on Guidelines for Preventing Unfair Practices in Digital Asset Trading

In accordance to the terms and conditions of the Royal Decree on Digital Asset Businesses B.E. 2561 and relevant regulations which stated that the digital asset business operator shall have digital assets trading system to monitor and inspect the market conditions, including to prevent any improper trading of the digital assets traded in the exchange. Therefore, the Company issues this Announcement to clarify the guidelines and actions in case of the abnormal market conditions, resulting from sending unfair buy-sell orders.

Guidelines for actions when there is an incident of unfair transaction regarding digital asset trading

In order to control risks, reduce impacts, and protect customer interests, the Company, a digital asset business operator as digital assets exchange platform, has provided guidelines for actions when there is an incident of unfair transaction regarding digital assets as follows:

1. In the event that the Company considers the procedures and market condition monitoring system, and finds out that there is an unfair action in buy-sell market (Improper Trading), the Company will contact the owner of such account (“Account Owner”) to clarify on such unfair actions.
2. The Account Owner must clarify the reason for sending the improper trading orders within twenty-four (24) hours to the Company. In the event that the Company does not receive any explanation within the specified period and/or the explanation is unacceptable to the Company, the Company will immediately impose penalties for such unfair actions to the Account Owner.
3. The Company will impose the level of penalties resulting from unfair actions by considering the intent of the person sending the trading order, impact of such actions, and repeating behavior. The penalties are divided into 3 levels as follows:

3.1 Warning Letter

In the event that it is not a serious offense and/or does not have a significant impact to other investors and/or trading boards, the Company will send a warning letter to the Account Owner and request the Account Owner not to send any order which is against to the rules or the monitoring system of the Company.

3.2 Suspension of digital assets trading account

In the event that the Company has sent the warning letter as specified in Clause 3.1, and the Company found that there is a repeated wrongdoing behavior and/or the Market Monitoring Committee is of the opinion that the digital asset trading account (“Trading Account”) shall be suspended not for buy-sell digital assets, the Company will temporarily suspended such Trading Account for a period of seven (7) days.

3.3 Relationship termination

In the event that Trading Account is temporarily suspended for seven (7) days as specified in Clause 3.2, and the Company found that there is still repeated wrongdoing behavior and/or there is improper trading which significantly affects to other investors and/or trading board, the Company shall consider terminating such Trading Account, including not to allow the Account Owner to apply for the new account within the period specified by the Company.

The Account Owner who receives penalties at each level, will be notified via email which the Account Owner used to open the Trading Account, and the Account Owner will be informed the reasons for the punishment, and penalties within seven (7) days from the discretion date by the Company. If the Account Owner wishes to inquire more details, or dispute the Company's discretion, the Account Owner shall contract the Company within twenty-four (24) hours of receipt of email notice.

However, in the event that there is an event of unfair trading action, and the Company suffers damages from such action (whether directly or indirectly), the Company reserves the right to proceed any legal actions to claim for such damages from the Account Owner.

Please be informed and cooperate with this Announcement. The Announcement will be in effectives from 12 September 2024 onwards.

Examples of behaviors that are considered as unfair trading actions

• An abnormally high volume of trading and cancellation of orders at the same time (Trading Activities Spike Detection), such as the creation of a large number of orders and cancel the order immediately.
• Repeated trading with the same person or group of people, such as multiple transactions between two (2) accounts where the account owner is an individual, and/or the same group of people (Wash Trade) who are considered as a beneficial owner of such actions, including the purpose of camouflaging other investors to misunderstand of the price, or the trading volume of the digital asset, e.g. offering to buy at a price higher/lower or equal to the price that they have offered for sale by way of matching with a person or group of people or oneself significantly.
• Creation of orders that are continuously higher/lower the normal price, e.g. there is a sell order with a price lower than the last traded price by creating orders continuously, which is considered suggestive or push up the price with the objective of controlling digital asset prices, and make other investors misunderstand on prices that change significantly over a period of time.
• Sweeping buy and sell orders in the market, e.g. sweeping sell orders causes the market price to significantly rise and continue such action.
• Creating multiple orders at the same price, while such orders can be placed in a single order in order to control the price of digital assets not to change in price, which is considered as a price support as the price of digital assets will not be changed or cause a misunderstanding that there is a demand to buy/sell in such digital assets.
• Insider trading within the organization, or personal relationships to obtain the benefits from such inside information to decide buy or sell digital assets, such as speculation or hoarding such digital assets (Insider Trading).

The above behaviors are examples of behaviors that can be considered unfair actions, or affect to other investors in the trading exchange. If the Company inspects other actions that may be intentionally causing abnormal market conditions or order abnormalities, the Company shall consider such actions as an offense according to the Royal Decree on Digital Asset Businesses B.E. 2561 and relevant regulations.