Several listed crypto mining companies reported operating losses in the first half of this year as crypto prices tanked, forcing many crypto platforms to go bankrupt.
According to coingecko.com, the world's largest independent cryptocurrency data platform, the total crypto market valuation stood at US$1.08 trillion on Aug 25, down from a peak of $2.99 trillion in December 2021.
A 70% drop in market capitalisation caused global investors to incur losses in cryptocurrencies this year.
Listed Thai companies that tried to diversify investment into digital assets like crypto faced the same fate.
Mongkol Puangpetra, executive vice-president for strategy research at Daol Securities, said the cryptocurrency market has been hard hit since the beginning of the year.
Among the factors that affect digital asset markets is a decline in global liquidity because of high inflation and interest rate hikes, prompting investors to move their money back to the money market and other risky assets.
The crypto crisis started with the collapse in May of TerraUSD, an algorithmic stablecoin platform, which shook investors' confidence in stablecoins and altcoin platforms.
Then Celsius Network, a crypto lending platform, declared bankruptcy in mid-July.
"Not surprisingly, many listed companies reported lower profits or losses for investment in digital assets in the first half. Meanwhile, many companies that planned to invest in digital assets have slowed investment since the Russia-Ukraine war started to wait and see how the conflict develops," said Mr Mongkol.
"Listed firms that invested in Bitcoin mining differ from those investing in forex, which has been under attack by scams and fraud, while some traders have no licence. Investors wondering if their money is actually invested can check with the listed companies they hold a share in or ask company executives at shareholders' meetings."
So far, he said there have been no complaints about fraud from digital asset mining.
Share prices of listed companies involved with mining fluctuates in line with movements in the crypto market, said Mr Mongkol.
Earlier, Finance Minister Arkhom Termpittayapaisith said the Economic Crime Suppression Division (ECD) has investigated 10 listed firms involved in digital asset mining.
The ECD should coordinate with the Securities and Exchange Commission (SEC) to investigate listed companies that operate digital mining businesses after their share prices fluctuate sharply to determine possible stock manipulation, said Mr Arkhom.
The minister has not received a report from the SEC, and if the police need information, they can coordinate with the SEC.
However, officers from the ECD have the power to investigate cases under the Securities and Exchange Act. For example, they can use their authority to request listed companies send information for consideration.
If those are cases are covered by the Securities and Exchange Act, the ECD can coordinate with the SEC for further consideration.
