Thailand based crypto exchange platform named Satang Corp. is planning to raise $9.9 million through a security token offering (STO). The announcement has come when the market is remarkably bearish, and crypto prices are crashing.
The exchange firm intends to build its own e-wallet app named the Satang app. The app is expected to enable its users to make payments, and also establish Satang Shops in tourist centers like Phuket and Pattaya. Reportedly, satang has received support from the Government of Thailand with an aim to make the country a blockchain center and develop a regulatory framework for digital currencies and blockchain.
Here, the CEO of Satang and founder of ZCash Poramin Insom stated, “We are aiming for the first quarter of 2019 to do the security token offering.”
Moreover, Insom contributed to implement blockchain technology during a primary election in the country’s Democrat Party, in November. Reportedly, Insom noted, “I hope that other political parties or even the government not just in Thailand but in the region can look to using blockchain technology in enabling large-scale e-voting or polling.”
It seems STO’s are a new way of funding in for cryptocurrency companies. It is drafted in a way to raise funds, while still meeting the necessary regulatory requirements. STOs are an enhanced and more mature version of initial coin offerings.
On the position of STOs in Thailand, the Deputy Secretary of the Thai Securities and Exchanges Commission Tipsuda Thavaramara revealed that Thai-related STOs launched in an international market break the law. Thavaramara stated that the regulator will have to consider how to deal with STOs for issues like share ownership, voting rights and dividend.
Satang’s STO comes as an initiative in Thailand’s regulatory environment as South Korea’s crypto trading platform Bithumb is also looking forward to launching an exchange in the country.
Notably, Thailand also plans to deploy blockchain technology in other major sectors such as the Revenue Department. The department is testing blockchain technology for tracking value-added tax (VAT) payments.
Also, Ekniti Nitithanprapas, director general of the Thai Revenue Department expressed that the department “wants to use blockchain technology to prevent VAT refund fraud.” Nitithanprapas believes that the move will ultimately “compel more people to enter the formal tax system.”