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BANGKOK – The pioneer of Thai satanics for the exchange of cryptocurrencies is challenging the recent collapse in virtual currencies with plans that generate $ 9.9 million in a security token offering at the beginning of next year, as the Government accelerates the adoption of blockchain technology behind virtual currencies.
The Satang plan has the support of the Thai government, which wants to make Thailand a center for blockchain.
"We are aiming for the first quarter of 2019 to offer security tokens," said Satang CEO Poramin Insom.
Security tokens are a new method of raising funds for cryptocurrency companies that offer investors a share of profits from certain assets through a dividend. The value of tokens varies depending on the performance of the company.
Tokens are designed to avoid regulatory issues encountered in the industry's previous fund-raising method: the first coin offerings, or ICOs, that often did not comply with US securities laws. However, this weekend, Beijing announced that security token offers remained illegal in China as they had not yet been authorized.
Satang intends to use the proceeds of the security token offer to develop Satang App, an e-wallet that allows consumers to make payments. It also plans to set up Satang stores in hot spots such as Phuket and Pattaya.
The announcement of Satang comes at a time of turbulence in the cryptocurrency markets. The price of bitcoin, the most common cryptocurrency spread around the world, fell by 44.6% to $ 3,474 on November 25, the lowest level since September 2017, from $ 6,270 on November 14, just before beginning of the recent series of drops.
But the Satang plan has the support of the Thai government, which wants to incorporate the technology into its systems and establish a regulatory framework for blockchain and cryptocurrency.
The Thai revenue department revealed early November plans to track tax evasion using blockchain technology. Blockchain will help check fees, accelerate the repayment process and add transparency and security, said Ekniti Nitithanprapas General Manager. He previously said that applying new and emerging technologies such as blockchain and big data to the tax collection system is his priority.
"The government will manage the next national digital ID platform on blockchain," said Kirida Bhaopichitr, director of the Thailand Economic Intelligence Service Developmet Research Institute, referring to the government infrastructure to provide a flexible and highly secure self-identification method for any Thai citizen. "It would allow the government to track transactions and also reduce paperwork for ordinary people".
In June, Thailand legalized seven cryptocurrencies: bitcoin, ethereum, cash cash, ethereum classic, litecoin, ripple and stellar. It also allowed a limited number of exchanges of cryptocurrencies and broker-dealers to request operational licenses.
In August, the Bank of Thailand stated that it would create a digital currency to be used for the transfer of money between commercial banks and the central bank. He said it would work with eight commercial banks to build a prototype.
On 23 November, the Thai SEC sent a warning to 14 non-authorized cryptocurrency exchange operators, in a sign that its regulatory system is working and reporting improper practices.
In addition to the STO of Satang, the second largest exchange of cryptocurrencies in South Korea, said in July that it would open an exchange in Thailand, thanks to the clear regulatory framework there.
Satang Poramin's CEO was behind another blockchain milestone in the country at the start of this month. He applied technology for the first time in the world in an election: the Thai Democratic Party used it to conduct primary elections to select a leader.
The nationwide electronic voting process involving 120,000 voters required nine days instead of the five originally scheduled due to a technical problem, but successfully avoided classic errors such as multiple counting of a single vote and manipulation of results.
But it is not thought that the blockchain will be used in general elections that could be held as early as 24 February next year.
Yet Poramin is ambitious. "I hope other political parties or even the government not only in Thailand, but in the region, can use blockchain technology to allow electronic voting or large-scale polling," he said.
