The Thai government backs a crypto exchange, Satang Corporation, in its move to establish Thailand as a blockchain hub.
The crypto exchange is focusing on the future despite the recent prolonged bearish cryptocurrency market. In early 2019, Satang, which is based in Thailand, is planning a security token offering (STO) from where the exchange targets to raise 9,900,000 U.S dollars.
Poramin Insom, Satang’s CEO, indicated that they are planning to issue the STO before the end of the first quarter of 2019.
“Security tokens are a new method of fundraising for cryptocurrency companies which offer investors a share in profits from certain assets through a dividend. The value of the tokens fluctuates according to the performance of the company,” as noted by Nikkei Asian Review.
This method of fundraising is viewed as a shortcut to the popular initial coin offering (ICO) which has been faced with a lot of regulatory difficulties. For example, in the United States, ICOs are still a grey area with the SEC trying to regulate them on a case by case basis. However, China is yet to recognize security tokens as a legal way to raise funds by cryptocurrency-affiliated firms.
The Thai government backs a crypto exchange in its STO issuance since it wants to invest heavily on the technology that underpins cryptocurrencies.
For example, the director for Thailand Development Research Institute Economic Intelligence Service, Kirida Bhaopichitr, indicated that “the government will run the upcoming national ID platform on blockchain. It would allow the government to trace transactions, and would also reduce paperwork for ordinary people.”
Additionally, Thailand’s central bank hinted on plans to develop a virtual currency which, for a start, will be used to facilitate money transfer between commercial banks and itself.
The Thai government is also seeking to employ the blockchain technology to track tax evaders.
So far, Thailand has legalized Ethereum, Bitcoin, Bitcoin Cash, Ripple, Ethereum Classic, Stellar, and Litecoin.
Source: Cryptoline News