Thai Exchange Operator Satang Plans $10M Security Token Sale
Despite the bearish mood in the crypto market, the Satang exchange operator plans an STO with a fund-raising target of up to $10 million.
After the precipitous drop in initial coin offering (ICO) investments, several companies are regrouping and planning security token offerings (STOs). The latest Asian venture with such intentions is Satang Corp, a Thai-based crypto exchange operator, Nikkei Asian Review reported.
Satang is undertaking the token sale with the support of the Thai government, which aims to turn the country into a regional blockchain hub. The Satang Pro exchange had a 24-hour volume of 912,424 Tether (USDT) as of December 5.
According to CEO Poramin Insom, Satang aims to conduct the STO in the first quarter of 2019.
Security tokens are currently aiming for wider distribution, but their issuance is not as straightforward as the creation of ICO tokens in the past. Special token issue services have cropped up to curate the token sale, including a KYC/AML procedure to sift out dishonest investors. These assets will have the features of company shares, which means their value will not be speculative but depend on the project’s performance.
Satang’s decision could help Thailand become a hub for STOs. The positive stance of the local government to such sales stands in contrast to Beijing’s position. Last weekend, the Chinese government reiterated that security token sales are also illegal. China cracked down on ICOs in September 2017 and is unlikely to favor the new trend of security tokens.
Thailand accepts several major crypto assets as fully legal, but the country is strict when it comes to market operators. Recently, the local Securities and Exchange Commission issued a list of 14 crypto service sites that users perceived as dishonest.
The Thai central bank launched a pilot project for using a digital token for interbank payments, indicating that the country is open to using tokens and blockchain to improve the financial sector. Nevertheless, Thailand has relatively strict regulations when it comes to selling and exchanging digital assets.