Thailand Exchange Launches Blockchain Based Crowdfunding Platform

To nurture startups, small and medium-sized enterprises, the Stock Exchange of Thailand (SET) has launched Launchpad and Investment Vehicle for Enterprises (LiVE), a blockchain-fueled crowdfunding platform. The platform will also provide Over-the-Counter (OTC) trading facility to assist startups and SMEs in Thailand to obtain capital funding.

Live Fin Corp Co. Ltd, a wholly owned subsidiary of Bangkok-based SET followed the path treaded by the Australian Securities Exchange (ASX) and the Hong Kong Stock Exchange (HKEX) to build and launch the blockchain based platform LiVE.

“Businesses can utilize LiVE to promote to a wider target group while using partnership to expand customer base. In addition, this platform also offers opportunities for investors, both individual and corporate, who are qualified by the Securities and Exchange Commission (SEC) regulations, to select to invest in their preferred business with growth potential.”

In order to join the blockchain platform, the following condition should be met by the company

• Enterprise should be registered in Thailand
• Founders and executives should not carry any criminal records
• Certified auditors much conduct a detailed audit of the financial statements of the company.

To raise over THB 20 million ($625,000), a company must prove that it has raised over THB 5 million ($156,000) in the past, or be backed by a certified sponsor. To raise over THB 100 million ($3 million), an enterprise must produce financial statements audited by SEC-certified auditors.

The platform will accept four types of investors.

• • Institutional investor
  • Venture capital
  • Corporate venture capital

Investor with a minimum annual income of THB 4 million ($125,000) or with total assets worth at least THB 50 million ($1.5 million). At least one year of investment experience is required.

As of date, eight companies from diversified business sectors such as consumer products, medical equipment, and mobile applications have already joined and over 50 more enterprises are expected to follow suit.

SET President Kesara Manchusree said

“SET is determined to offer growth opportunities through the creation of a complete startup ecosystem, inclusively from the business management education for startup and SME entrepreneurs to assistance in connecting with institutional and accredited investors. “LiVE” platform will be a key mechanism to help drive forward Thailand’s growth especially enabling startups and SMEs to have more financial accesses through crowdfunding.”

The platform is yet another example of adoption of blockchain technology in the financial sector.