Thailand-based cryptocurrency exchange Satang Corp. has its sights set on raising $9.9 million through a security token offering (STO), the Nikkei Asian Review reports.
Satang plans to raise funds as crypto markets continue to crash all across the world. The exchange would use the funds raised through its STO for building its proprietary e-wallet app, the Satang App, which would make it easy for customers to buy cryptocurrencies with fiat. It also plans to setup experience centers at highly dense tourist areas in Thailand.
“We are aiming for the first quarter of 2019 to do the security token offering,” Satang CEO and founder of privacy-focused cryptocurrency Zcoin, Poramin Insom, noted in the report.
STO’s are a new funding method for cryptocurrency companies designed to avoid the regulatory bottlenecks that characterized its predecessor, Initial Coin Offerings (ICO). They offer investors a share in the profits generated by the company they invested in.
According to the report, the digital asset platform has the blessings fo the Thai government, which seeks to make the Asian state a “center for blockchain” activities by establishing a regulatory framework to direct how the blockchain and cryptocurrencies would work in the country.
Satang’s STO is a dawn of a new day in Thailand’s regulatory environment as South Korea’s second largest crypto trading platform Bithumb has also set its sights on launching an exchange in the country.
Thailand made history some weeks back when it conducted the first primary election on the blockchain. The country’s main opposition party, the Democrat Party, brought over 100, 000 voters to elect a new leader at a blockchain based primary election. According to the reports, the election was successful in avoiding multiple counts and the manipulation of results, which often characterizes exercises of this magnitude.
Last month, Thailand’s federal revenue department announced plans to use the distributed ledger technology to track tax evasion and combat fraudulent VAT refund claims in the country. The department’s Director-General Ekniti Nitithanprapas said his agency’s priorities was to integrate innovative technologies to boost revenue collection and widen the taxpayer base. There are also plans by the government to use the blockchain to run its “upcoming national digital ID platform” as it hopes to create a secure and flexible means of creating self-identification for Thais.
Thai’s central bank, the Bank of Thailand, is also building a prototype for a state-backed digital currency to be used for transferring funds between commercial and the central banks.
Featured image from Shutterstock.
Last modified: May 20, 2020 2:18 PM UTC