The Stock Exchange of Thailand (SET) has planned to launch a blockchain-based marketplace by the third quarter of 2017, for trading in startups, BangkokPost reported.
The investors of both SET as well as the Market for Alternative Investment (MAI), which is a stock exchange for smaller firms and startups, trade in the units of 100. According to SET president Kesara Manchusree, with the aid of blockchain technology, there will be no restrictions in the trading units. Blockchain allows only institutional, VC funds, angel investors and other experienced investors.
The plan for blockchain marketplace for startups came after Deputy Prime Minister Somkid Jatusripitak responded to instructions, saying that SET must consider a facility for startup fundraising. Kesara mentioned that the blockchain marketplace will be operated by SET and the exchange is working on to finalize the details by March.
According to Santi Kiranand, senior executive vice-president and chief marketing officer of the SET, the marketplace is expected to get extended to SME traders as well in the later stage.
“It will be a 'marketplace', not a miniature of the SET and the MAI, where investors generally believe that securities traded are well-selected and regulated. As it is not a trading board, there is no regulator to verify their quality and investors must make investments by themselves,” Santi told, as reported by BangkokPost.
He stated that there will be few qualification requirements for those startups that will raise funds in the marketplace. Also, the types of investors are limited for the SMEs and startups marketplace since they are higher-risk by nature.
“The startups that want to mobilize funds from this marketplace must register with the authorities, conduct business with transparency and have a single financial account,” he added.
