I've seen bot trading on Bleutrade and Bittrex. Bot trading between currencies (i.e. BTA/BTC and BTA/DOGE) make sense. Bot trading between exchanges makes sense. But bot trading to simply give the appearance of increased volume makes no sense and benefits nobody except the exchange needing the publicity of appearing to have a competitive trade volume.
The increased volume of trades attracts traders--like me--who then proceed to investigate the volume. In the case of Bittrex that volume turns out to be justified by the amount of open orders on the books. But the increased volume of trades on Livecoin turns out to be an illusion. There are very, very few open orders for BTA even compared to much smaller exchanges.
So the bot trading for volume appears to be a bait and switch. It damages the credibility of the exchange. It is a horrible business model because it doesn't work except (possibly) in the short term and it makes the trader feel deceived. And it cements the loyalty to exchanges that do not have/use such tactics.
I would not ask you to change your API and bot trading policy. It is important for traders to experience the difference between trustworthy and untrustworthy trade volume.