Thai cryptocurrency exchange Satang Corp. has plans to raise almost $10 million in a security token offering (STO), in spite of the market’s downward trend of late.
Asia-focused business publication Nikkei Asian Review shed light on this matter in a report.
Satang’s plans are supposedly backed by none other than the Government of Thailand in a focused effort to make the country a blockchain hub and develop a regulatory framework for digital currencies and blockchain.
The exchange’s CEO, Poramin Insom, explained that the STO would be done in the early part of 2019.
Satang has plans to utilize the $9.9 million it raises to work on an e-wallet that allows users to make payments, and set up Satang Shops in tourist hubs such as Phuket and Pattaya.
STOs in Thailand currency function in a regulatory grey-zone, as the new financial product straddles two regulatory classifications. Last week, the deputy secretary of the Thai Securities and Exchanges Commission Tipsuda Thavaramara said that Thai-related STOs introduced in a foreign market actually violate the law. Thavaramara reportedly “said the regulator will have to consider how to deal with STOs for issues such as share ownership, voting rights and dividend.”
Last month, Insom had a hand in deploying blockchain technology during a primary election in the country’s Democrat Party. Elections for a party leader were done on a blockchain-based mobile app, according to tech news outlet Built In. Data collected from the app was kept in hashed files that were stored on the Zcoin blockchain developed by Insom.
“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,” Poramin was quoted as saying.
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