Thailand Speeds up Blockchain Adoption Despite Bitcoin Plunge


Thai cryptocurrency exchange pioneer Satang Corp. is defying the recent meltdown in virtual currencies with plans raise $9.9 million in a security token offering early next year, as the government accelerates adoption of the blockchain technology behind virtual currencies.

Satang’s plan has the backing of the Thai government, which wants to make Thailand a center for blockchain.

“We are aiming for the first quarter of 2019 to do the security token offering,” Satang CEO Poramin Insom said.

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.

The tokens are designed to avoid the regulatory problems that were encountered by the industry’s previous fund-raising method – initial coin offerings, or ICOs, which often did not comply with U.S. securities laws. However Beijing this weekend announced that security token offerings remained illegal in China as they had not yet been authorised.

Satang intends to use the proceeds of the security token offering to develop Satang App, an e-wallet that allows consumers to make payments. It also plans to set up Satang Shops at tourist hot spots like Phuket and Pattaya.

Satang’s announcement comes at a time of turbulence in the cryptocurrency markets. The price of bitcoin, the most common cryptocurrency circulated around the world, tumbled 44.6% to $3,474 on Nov. 25, the lowest level since September 2017, from $6,270 on Nov. 14, just before the recent series of drops started.

But Satang’s 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 cryptocurrencies.

The Thai revenue department revealed early November plans to track tax evasion using blockchain technology. Blockchain will help to verify tax amounts, speed up the refund process and add transparency and security, said the department Director-General Ekniti Nitithanprapas. He previously said that applying new and emerging technologies such as blockchain and big data in the tax collection system are his priorities.

Leave a Comment

Scroll to Top