With the current plunge in Bitcoin prices, Satang Corp. a Thailand-based cryptocurrency exchange is planning to issue Security Tokens (STOs) to raise funds for development purposes. As reported by the Nikkei Asian Review earlier this week, the exchange seeks to raise $9.9 million through Security Tokens Offerings and the Thai government approves.
The STOs launch is slated for Q1 2019 and it is hoped to raise $9.9 million that will be used strictly for the exchange’s future growth plans. Seemingly startups prefer STOs to ICOs considering that STOs present a lower risk to investors compared to ICOs. With STOs, investors earn interest or dividends in the event that the assets under which the coins have been pegged appreciate in value.
Purpose of the funding
According to the announcement, Satang plans to invest the nearly $10 million in the development of the exchange’s e-wallet which will benefit its users in terms of ease of processing payments within the platform. With the remaining amount, the exchange will invest in creating Satang shops in strategic places particularly in the nation’s tourists’ hot spots like Phuket and Pattaya.
One impressive thing about Satang’s announcement is the fact that Thai government is OK with the exchange’s plan to issue STOs. This is particularly the sound of soothing music to the ears of the crypto community’s stakeholders especially in the wake of several persecutions regarding digital assets, ICOs and even STOs.
Despite not having elaborate cryptocurrency regulatory frameworks in the country, at least Thai is not banning the whole thing like its Asian counterparts. The Thai Securities and Exchanges Commission has not yet established guidelines on STOs’ holders ownership, voting rights together with dividends entitlement.
Thai’s Blockchain obsession
Nonetheless, the nation is enthusiastic about Blockchain technology that one of its democratic parties held Blockchain-powered Primary elections in November.
The nation’s revenue department is also mulling deploying Blockchain solution to track down VAT payments. Through machine learning and Artificial Intelligence technologies integrated with Blockchain, the agency can identify VAT non-compliant citizens.