XSpring Digital (XD), a Bangkok-based initial coin offering (ICO) portal service provider, is upbeat about its business outlook this year after the cabinet recently decided to waive value-added tax (VAT) on the sale of investment tokens.
The company aims to become a leader in the ICO portal business by more than doubling the number of customers using the service this year, said acting chief executive Tanasak Krishnasreni.
There are 10 customers in the process of launching digital investment tokens and ready-to-use digital tokens, he said.
"Digital tokens are among the digital assets that could catch the interest of investors and energise the market this year once tax concerns are resolved," said Mr Tanasak.
He said XD's clients postponed their plans to issue digital tokens as they awaited clarity on the law.
On Tuesday, the cabinet agreed to waive both corporate tax and VAT for funds raised via ICOs of investment tokens, in a bid to encourage listed and non-listed companies to launch ICOs.
Investors in the secondary market are also entitled to the VAT exemption when trading such tokens.
"The tax exemption is a key driver to encourage the private sector to raise funds by issuing digital tokens," said Mr Tanasak.
He said companies could now make faster funding decisions, while it should create opportunities for people to study the possibilities of expanding their business using this fundraising method.
"Especially for new-generation entrepreneurs who are interested in technology, digital token fundraising is an alternative that could create opportunities for investors to access a variety of investment sources more equitably," said Mr Tanasak.
XD has strengths in the Tezos blockchain network, which is specifically designed for crowdfunding with a special feature that can automatically upgrade itself, he said.
Tezos is the most secure and advanced technology, said Mr Tanasak.
Of the 10 existing customers, he said some are in the process of filing an application with the Securities and Exchange Commission for a digital token offering, while others have consulted with XD over the issuance of investment and ready-to-use digital tokens.
